The Texas House on Tuesday gave its approval of Senate Bill 2, a sweeping property tax reform bill that lowers the rollback rate for cities and counties. The current rollback rate is 8-percent, meaning cities and counties can raise property taxes by that full amount without seeking approval from the voting public. Senate Bill 2 significantly lowers that rollback rate to 3.5-percent for cities, counties, and other taxing entities, with the exception of school districts which would be limited to only 2-percent raises without public approval.
Austin Mayor Steve Adler has repeatedly said a lower rollback rate would dramatically impact the city’s ability to fund certain city services. Public safety makes up the bulk of Austin’s annual budget, and Adler has, on more than one occasion, threatened to slash police, fire, and EMS budgets before anything else in order to compensate.
While agreeing that very few people would actually welcome a rise in their taxes, Austin Chief of Police Brian Manley is feeling a growing sense of concern that his department may feel the effects of this, as well as the citizens of Austin in the years to come.
“The calls won’t come in today about wanting to pay more in taxes, but I expect the calls will come in the next year or the year after when the city does not have the dollars it would’ve had otherwise,” says Manley.
The chief is also worried about how this kind of legislation could affect APD’s relationship with the city council after finally reaching an agreement on a contract late last year. APD’s contract expired in December 2017, and for nearly a year the back and forth continued in negotiations, which were, at times, quite contentious.
“If the economic picture changes, that’s probably going to bring that agreement/resolution into discussion as to whether it’s still affordable,” he says.
Governor Abbott praised the passage of SB2, releasing the following statement:
“For too long, Texans have watched their property taxes skyrocket while being reduced to tenants of their own property. That is not the Texas way.
Thanks to the leadership of Chairman Burrows and Chairman Bettencourt, Senate Bill 2 has passed both chambers and we are one step closer to reining in skyrocketing property taxes.
In the final days of the legislative session, I am confident this historic legislation, combined with additional reforms working their way through the system, will reach my desk where I will sign them into law. I look forward to working with Lt. Governor Patrick, Speaker Bonnen and the entire Legislature to deliver lasting property tax relief to every Texan.”
