The Texas Supreme Court has denied a petition in a lawsuit challenging Austin's ballot language for its upcoming tax rate election. The decision comes after Texas' Third Court of Appeals also dismissed the lawsuit.
The original lawsuit was filed in August by former Austin mayoral candidate Jeff Bowen. Bill Aleshire, Bowen’s attorney, said the ballot language doesn’t specify how much money the city is committing to each project, and that means it can use the money however it wishes. The ballot language also says the increase is for the 2025-26 fiscal year budget. Aleshire argues the increase would continue to affect tax bills going forward, and that is misleading to voters.
“Jeff Bowen and I have done everything we can in court to try to stop voters from being misled, and that is still a concern,” Aleshire said. “This is another huge tax increase coming on top of fee increases the City Council also adopted.... We all love Austin, but we want it to be affordable so people can stay here and keep the homes they’ve got.”
The Austin City Council approved its $6.3 billion budget last month, including a property tax rate hike that will require voter approval. The city approved a rate of 57.4 cents per $100 of taxable value, which is 5 cents above what is allowed by state law without triggering an election.
If voters approve the increased tax rate in November, the city plans to use the money to improve parks, address homelessness and meet public safety needs. It would also help close a $33 million deficit the city is facing.
While the lawsuit was dismissed, Texas Supreme Court Justice Evan A. Young said Bowen’s concern over the ballot language is not groundless.
“The question is close,” he wrote in a statement. “The City’s lengthy purpose statement includes a laundry list of programs and then tacks on a catchall provision.… The risk is that a sweeping catchall paired with a loosely defined purpose may obscure what a city’s increased revenue will actually cover.”
Additionally, while the tax increase would fund the 2025-26 budget, he said he can see how that ballot language could mislead people into believing the increase would just be in effect for a year.
In a post on X, Austin Mayor Kirk Watson shared his approval of the Texas Supreme Court's decision.
“We trust Austin voters and are looking forward to them making their decision in November," he wrote.
