Voters in Austin overwhelmingly blocked a property tax increase that would have raised tens of millions of dollars to support homeless people and pay for other services, a rejection of increased municipal spending in one of the most reliably Democratic cities in Texas.
The proposal, which had easily passed the city council, would have generated an additional $109.5 million in the 2025-2026 fiscal year. The measure required voter approval because it would have increased property tax revenues beyond a state-imposed threshold. More than 60% of voters rejected it.
“Voters prioritized affordability,” Mayor Kirk Watson said in a statement acknowledging the defeat. “They’re worried about their finances, their grocery and utility bills, their property taxes, and more.”
At least $47 million of the money would have gone toward programs focused on homelessness, a central issue in Austin politics along with housing affordability. City priorities included expanding the number of rehousing units, continuing shelter operations and helping people transition from living in shelters to permanent housing.
While voters rejected the plan, Austin will still raise property taxes, stopping just under the threshold that triggers a ballot referendum. The annual bill for a typical homeowner will rise by $104.76, compared with an increase of $302.68 if the proposition had passed, according to city figures based on a median home value of just under $495,000.
Groups allied against the proposal spent more than those supporting it, according to a local NBC affiliate.
The measure’s failure is a win for Governor Greg Abbott, a Republican, who signed property tax cuts into law this year and advised voters to reject Austin’s ballot measure. He has also called for further limits on cities’ abilities to raise property taxes.
