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Texas Counties and Cities Take Divergent Tax Steps to Close FY2027 Gaps

Revenue drops from lower taxable values plus expiring ARPA funds forced officials to choose tax hikes, cuts, or one‑time fixes that largely patch near‑term shortfalls but leave structural deficits.

Overview

  • Harris County approved a combined 67¢ per $100 tax rate on Thursday to close about a $180 million deficit, with a 3-1 vote on the final rate and criticism from Judge Lina Hidalgo who called the plan unsustainable.
  • Fort Worth’s City Council unanimously adopted a $3.33 billion budget and raised the city tax rate to 70.565¢, restoring some programs and adding higher monthly fees that the city says still lower the average bill because taxable values fell.
  • San Antonio’s council narrowly voted 7-4 to approve a 3.9% property tax increase, the first city tax hike since 1992, as leaders said deeper cuts would disproportionately hurt low‑income neighborhoods.
  • Tarrant County approved an $834 million FY2027 budget and again cut its county and JPS Health Network rates in a 3-2 partisan vote, marking the fourth straight year of county tax reductions.
  • Bexar County adopted a $2.6 billion budget while keeping its tax rate flat and announced County Manager David Smith will retire on Dec. 31, but officials across jurisdictions warn these decisions are short‑term fixes that leave recurring pressures from pay raises, healthcare and indigent‑defense costs unresolved.