Travis County Faces Lawsuit Over 9.12% Tax Increase Claims

A lawsuit has been filed against Travis County officials by local political figures and taxpayers, alleging that the county unlawfully utilized a disaster tax exemption to implement a property tax increase of 9.12%. The Travis County Commissioners Court approved this temporary tax hike in September 2023, which is expected to add approximately $200 to the average homeowner’s tax bill next year and generate an additional $42.2 million in revenue.

According to a 2019 state law, local governments can raise property tax revenue by up to 3.5% annually without requiring voter approval. The law, however, permits a one-time increase of up to 8% if a county receives a disaster declaration from the governor within the same year. The plaintiffs, newly elected Lago Vista Mayor Shane Saum and former Austin mayoral candidate Jeff Bowen, argue that Travis County Judge Andy Brown and the other commissioners overstepped their legal authority by claiming the disaster declaration exemption.

The lawsuit contends that this exemption is only applicable to funds necessary for responding to a specific disaster. The county cited the flooding that occurred on July 4 as justification for the tax increase, yet the plaintiffs note that the revenue generated is more than double the added costs attributed to the flood, which they estimate to be around $20 million. “Travis County used a disaster declaration meant to help flood victims as an excuse to raise taxes beyond what was necessary,” said Saum. “We’re standing up for taxpayers who expect their leaders to act within the law, not around it.”

In response, Travis County spokesperson Hector Nieto emphasized the significant damages incurred during the July flooding, characterizing it as an event that necessitated resources from all over the county. He stated that the county’s immediate response was critical, and the tax code offered a means to cover the costs associated with this rapid and extensive response. “The Travis County Commissioners Court carefully considered and followed the law created by the Texas Legislature when adopting the FY 2026 tax rate,” Nieto said. “We disagree with the allegations made in the lawsuit and look forward to defending our case in a court of law.”

The plaintiffs are being represented by former Travis County Judge Bill Aleshire and attorney David B. Brooks. Aleshire, who also served as the county tax collector in the 1980s, criticized the commissioners court for acting “lawlessly and foolishly” during a time when residents are seeking tax relief. He stated that the proposed tax increase should have been put to a vote.

This lawsuit follows closely on the heels of a recent Austin voter rejection of a proposed 20% property tax increase, highlighting ongoing fiscal tensions in the region. Residents are increasingly concerned about property tax burdens as local governments navigate budget deficits and seek new revenue streams. The outcome of this lawsuit could set a significant precedent for how disaster-related tax exemptions are interpreted and applied moving forward.