Texas cities are reaping a windfall of property tax revenue even though they haven’t grown much in the last decade. One might rightly question why they need all the new money if they are serving roughly the same number of people.

My colleague James Quintero recently compiled an analysis of property tax levies, property valuations, and population growth in Texas’ largest cities over the last decade. It shows how cities are seeing a massive jump in revenue while population growth stays relatively flat.

For example, in Austin, valuation has jumped 137 percent, levies have increased 120 percent, while population has only grown 17 percent since 2015. In San Antonio, values are up 90 percent, levies are up 81 percent, but the population has only increased by 4 percent. In Dallas, values and levies are up 113 percent and 94 percent, respectively, with the population also only growing by 4 percent. Houston, El Paso, Corpus Cristi, Arlington, and Lubbock reflect similar trends, and it is the same story at the county level.

This is the reason many people are feeling taxed out of their homes. Home values are not a driver of government costs; a growing population is. If a city is only growing by three or four percent, responsible local governments would lower the tax rate to a comparable measure to reflect a legitimate need, not pocket the windfall and boost spending. (Inflation has certainly added upward pressure, but even the extraordinary spike during Bidenflation does not justify the gigantic disparity in how much cities are collecting.)

“Values and rates should be inversely related,” says Quintero. “One goes up, the other comes down. Otherwise, your tax bills will explode.” Which is what has happened over the last ten years and taxpayers are fed up.

But taxpayers cannot completely blame local governments. “Every time voters pass a bond or approve a VATRE, they are increasing taxes on themselves, which is included in the tax rate,” warns Quintero.

The solution, as in most cases, is greater transparency andaccountability. If local governments legitimately need more money, then they should have to substantiate that need andnot hide behind increasing valuations.

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