Bay Area Edition | December 2025

State

BY HANNAH NORTON

This year, voters in communities across Texas were skeptical of local property tax hikes and supportive of larger tax breaks for homeowners and businesses, results from the Nov. 4 election show. Voters in Community Impact’s coverage areas approved just over half of the local bond propositions and tax rate elections on the November ballot. Local entities use funding from tax hikes to build new schools and facilities, hire educators and first responders, and maintain local infrastructure. However, amid high inflation nationwide, more Texas residents are tightening their belts and asking local officials to do the same, fiscal policy experts told Community Impact . Statewide election results Local voters across Texas approved less than half of proposed tax increases Nov. 4. Tax rate elections Bond propositions Local tax hikes faced uphill battle Nov. 4

Zooming in

This fall, a new state law required taxing entities to list “this is a tax increase” at the top of ballot propositions that could raise tax rates. “What voters are beginning to understand is that bonds and [tax rate elections] have a financial impact, and they are clearly beginning to shift their preferences as a result of being a bit more informed,” said James Quintero, who leads the tax policy team for the conservative Texas Public Policy Foundation.

Shannon Halbrook, who leads fiscal policy for the progressive think tank Every Texan, said that in “uncertain [economic] times, like what we’re in now,” voters are more worried about paying their own bills than helping fund local initiatives. “Texas voters understand that our schools and local governments provide essential services for everybody—they pave the roads, they pay for police services, fire services,” he said. “[Taxing entities] have to make a better case for why they’re asking for this additional money from voters.”

Bond measures across Texas, 2000-24 From 2000 to 2024, local governments throughout Texas put over 8,000 individual bond measures before voters, who approved nearly 80% of them.

0 100 200 300 400 500 600

445

Bond measures approved Bond measures rejected

112

2000 2004

2008 2012

2016

2020 2024

SOURCE: TEXAS BOND REVIEW BOARD/COMMUNITY IMPACT

The local impact

on the ballot 45

on the ballot 74

West of Austin, Bee Cave voters signed off on the construction of a new public library but rejected a tax increase to fund the $19.98 million project. In North Texas, Prosper residents rejected four of six local bond propositions for upgrades to a public works center and other services. Officials had not announced next steps as of press time.

Local governments whose tax hikes were shot down are now grappling with how to make cuts while maintaining essential services, Community Impact reporting shows. In Austin, roughly $100 million was removed from the city’s general fund and officials approved a reduced tax rate after voters rejected a 20% tax rate increase.

approved 18

approved 34

rejected 40

rejected 27

40% approved

45.9% approved

60% rejected

54.1% rejected

SOURCE: OFFICE OF SEN. PAUL BETTENCOURT/COMMUNITY IMPACT

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