Houston Keeps Property Tax Rate Flat Despite Budget Deficit

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Houston City Hall, Texas, USA

Houston leaders voted Wednesday to keep the city’s property tax rate unchanged, opting to dip further into savings rather than raise taxes to address a growing budget gap.

City Council Splits on Vote

The 12–3 vote, with one member absent, keeps the rate at 52 cents per $100 of property value through 2026. A homeowner with a $300,000 property will continue paying about $1,530 in city taxes. Council Members Abbie Kamin, Edward Pollard, and Sallie Alcorn opposed the move, warning it will deepen financial strain.

Alcorn, the council’s budget chair, called the decision “a swing and a miss,” noting the city will draw down $53 million from reserves to balance its $7 billion budget this year, creating a $128.5 million shortfall heading into the next fiscal year.

Whitmire Holds Firm Against Tax Hike

Mayor John Whitmire reiterated his refusal to raise taxes until his administration eliminates “waste, fraud and abuse.” He said a revenue plan is in development but did not share details. Houston, unlike other Texas cities, does not charge extra fees for services like trash or utilities, relying instead on property taxes for its $3 billion general fund.

Widening Deficit Ahead

City analysts project a $227 million deficit next year, potentially ballooning to $463 million by 2030 without new revenue. Some council members suggested adding a trash fee or lifting the local revenue cap to help close the gap, while others backed the mayor’s stance, saying financial reforms must come first.

Alcorn and Pollard pressed for a clearer revenue strategy. Kamin warned the city is “cutting our life out from under us” by holding the line on taxes without a long-term plan.

Public Affordability vs. City Services

Whitmire emphasized affordability concerns, saying he’ll only consider raising taxes when the public has confidence in City Hall. Meanwhile, residents continue to express frustration with basic services such as trash pickup, as Houston tries to balance financial caution with growing operational costs.

For more on Houston City Council, stay tuned to Que Onda Magazine.