AUSTIN, Texas — This Election Day, Austin voters said no to Proposition Q, a divisive measure that would have increased property taxes to expand affordable housing and fund other city services.
Only about 36% of Austinites voted in favor of the measure.
Austin Mayor Kirk Watson, who supported the measure, reacted to the defeat of Proposition Q in a statement posted on X, saying he trusts the decision voters made.
“Voters prioritized affordability. They’re worried about their finances, their grocery and utility bills, their property taxes, more,” Watson said. “They’re concerned about the stability of all levels of government, including city government. We need to give voters reason to trust us—to trust that we will strike the right balance between services and the funding needed to provide those services.”
The new ad valorem tax rate would have been $0.574017 per $100 valuation, which is $0.05 higher per $100 valuation than the city’s voter approval tax rate. Last year’s ad valorem tax rate was $0.4776 per $100 valuation.
A majority of the funds would have gone towards affordable housing and addressing homelessness, an ongoing issue in the city. This includes $35.5 million for permanent supportive housing, rental assistance, case management services and shelter beds; $11.5 million to continue operating two emergency shelters; and $1.9 million for workforce reentry programs.
The remainder of the funds would have gone towards health and safety services, parks and recreation and city employee benefits.
A tax rate election was triggered after Austin City Council in August approved a $6.3 billion budget for fiscal year 2025-2026 with a property tax rate greater than what was previously established.