A dozen cities across Texas have put a combined $2.3 billion in new debt up for a vote in the May 7 election. The new bonds are set to add to the debt currently being paid down by city residents.
A recent report by the Texas Taxpayers and Research Association (TTARA) detailing increasing property tax rates across Texas stated that while property taxes might remain nominally unchanged, more debt would increase the payment burden for every individual. The association also noted that residents should expect to experience “sticker shock” when receiving their appraisals this year, but that ultimately, Texans do have some control over their property tax rates.
“The simple truth is no matter what your appraisal, property tax bills would not be going up unless local jurisdictions wanted to spend more money,” the report stated. “Regardless of your 2022 appraisal, right now your 2022 tax bill is zero. Your tax bill won’t be set until the jurisdictions in which you reside decide how much money they want to raise and set their tax rates.”
The city of Kerrville has one bond proposition totaling $45 million on the ballot May 7 to build a joint public safety facility, according to the city’s website. According to Texas Scorecard, any new bond that is approved will be added to the existing debt of the city that will be paid by its residents.
While property tax rates in these cities may remain the same, increasing the debt payments of the city increases the amount of property taxes that need to be paid.
The Texas Public Policy Foundation reports the state’s total local debt burden including principal and interest was more than $365.3 billion in 2019, equating to a debt of $12,500 for every Texan.
