Travis County Faces Lawsuit Over Use of Flood-Related Property Tax Increase
AUSTIN,TX – โTravis County is being sued by a group of residents โฃalleging the county improperly used a temporary tax โincrease authorized for flood recovery to fund broader road betterment projects. The lawsuit, filed November 5th, challenges the county’s decision โto raise the property tax rateโข followingโ the July 5th flood that caused significantโ damage and loss of life.
The dispute centers โon a โฃprovision in the Texas Tax Code allowing local governments to increase tax rates to respond to disasters. Plaintiffs argue the county โmisused this exception, effectively creating a “slush fund” for projects beyond direct flood response.
“If they wanted to doโฃ that, they should’ve asked the voters for agreement, and โnot tried to misuseโ thisโข exception for the โฃdisaster tax,” said plaintiff Jack Aleshire. “It is not a provision that they can โuse to set up โa โคslush fund that they can use for road improvements.”
The โtaxโฃ rate increase was approved in September, but the lawsuit was filed shortly โafter voters rejected Proposition Q, a proposed city ofโข Austin tax โขrate increase. Plaintiffs contend โthe โคtiming suggests the county actedโ quickly to โขutilize the disaster-related tax revenue before new state legislation restricted its use.
Travis County spokesperson Hector Nieto statedโ the Commissioners Court disagrees with the allegations and intends to โdefend โits โฃactions inโ court.โ “Respondingโ to โคthat tragedy โคand supporting โthe immense lossโข so many families experienced requires resources from all over โthe county,” Nieto said. “The texas Taxโค Code provides an avenue to assist under these circumstances. Theโค Travis County Commissioners โขCourt โขcarefully considered and followed the law created by the Texas Legislature when โฃadopting โthe FYโข 2026 tax rate.”
Recent โchanges to state law, specifically House Bill 30 authored by state Sen. Paul โฃBettencourt, โwill restrictโฃ the use of disaster-related tax revenue to direct response efforts startingโ January 1st. Plaintiff Jon โฃSaum believes this legislation closes a “loophole” Travis County exploited. “So it kind of has the appearance that you’re sneaking it in at the midnight hour before thisโ goes away,” Saum said.
The lawsuit seeks โขto prevent the county from spending the disaster-related taxโข dollars on projects unrelatedโ to the July 5th flood. Theโ potential impact on residents’ property taxes if the plaintiffs prevail remains unclear, as property tax bills including the increase have already been sent out.