Virden: Affordability and property taxes have reached a crisis point in Austin

Jennifer Virden, Austin mayoral candidate, has issued the following press release:

(AUSTIN, TEXAS) -- July 14, 2022 - A recent poll released by the Austin Monitor showed that a majority of Austinites believe that a lack of affordability in Austin is our most pressing issue.

"While there are many contributing factors to affordability, there are two major factors that the city council can address - housing and property taxes," said Jennifer Virden, candidate for mayor. "Earlier this year, I laid out my plan to alleviate the high cost of permitting and development - to reduce the cost of building and to allow for an appropriate increase in the supply of housing. Today, I am sharing my plan to address the property tax crisis in Austin," Virden continued. 

The plan released on Virden's website includes three key reforms: 

1. Solve the school district recapture problem (a/k/a "Robin Hood").
2. Freeze - then reduce - city property tax bills. 
3. Benchmark the senior and disabled homestead exemptions.

Property taxes are the primary source of funding for the city's General Fund and one of the biggest costs of local government for residents. Increases in property taxes impact existing and potential homeowners, renters, and businesses. Since Steve Adler was elected, the city has averaged a 10.3% increase in property taxes above the effective tax rate - the rate that would be required to keep property tax bills the same as the previous year. 

Just yesterday, the Consumer Price Index (CPI) data for June was released showing that people are paying 9.1% more for household goods and services - like groceries, water bills, and health care - than they did last year. This is the highest year-over-year change since the 1970s. 

"Our city government's mission is to serve the residents of Austin, and what the residents of Austin need in this inflationary environment is a break from increasing costs. The city has the power and the duty to do that by not raising city property tax bills," said Virden. 

The mayor and city council will conduct two public hearings on the proposed budget and tax rate in late July and will vote to set the maximum tax rate at the August 2nd city council meeting.