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Austin Council Approves $6.3B Budget, Sets 5-Cent Tax Rate Election

The 10-1 council vote sends a 5¢ property tax increase to voters this November to close a structural deficit.

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Overview

  • The council voted 10-1 to adopt a $6.3 billion budget for fiscal 2025-26 that includes a 5¢-per-$100 property tax increase triggering a November election.
  • Marc Duchen was the sole dissenting vote, saying he opposes any tax rate election that would raise homeowner bills beyond the state-allowed 3.5 percent cap without voter approval.
  • The proposed 5¢ levy would add about $302.14 annually to the average homeowner’s property tax bill, excluding rate-driven increases already in the base budget.
  • Council members directed the new revenue toward fully funding the Homeless Strategy Office’s $101 million plan, parks maintenance, public safety staffing and key social services.
  • The ballot measure will appear in November, giving homeowners the final say on the property tax hike to fund city services and narrow the budget gap.