As Austin voters decide on Proposition Q this November 4, 2025, they face a pivotal vote that could reshape the city’s economic landscape. Proposition Q aims to permanently increase the city property tax rate by $0.05 per $100 valuation, setting the new rate at $0.574017 per $100.
This would mean a typical homeowner with a median-valued home at $494,803 would see an annual tax increase of around $303, raising an additional $109.5 million for the city.
Evaluating the Permanency and Scope:
Proposition Q introduces a lasting tax increase with no sunset clause, potentially setting a precedent for future tax hikes. Critics, including respected local voices and financial institutions, argue this could push Austin towards exclusivity, impacting not just homeowners but also renters who would likely see these tax hikes reflected in their rents, exacerbating the affordability crisis.
Concerns Over Fiscal Management and Transparency
Austin’s ongoing budget issues, including a current $33 million deficit, highlight a need for fiscal restraint rather than increased taxation. Moreover, suspicions of improper campaign activities related to Proposition Q’s support casts further doubt on the proposition’s integrity and the transparency of its advocates.
The Decision at the Polls
This vote isn’t just about higher taxes; it’s about Austin’s direction regarding fiscal management and growth sustainability.
Voters should consider both the immediate financial implications and the long-term effects of enshrining a “forever tax.”
