Austin City Council voted to double the city's property tax homestead exemption to 20%, the maximum allowed by state law, on Thursday. City staff estimate that the median homeowner would save $141 in Fiscal Year 2021-22 under this new rate.
Homeowners pay property taxes to multiple entities, including Austin ISD, Travis County, Central Health and Austin Community College District, in addition to the city of Austin. The city's tax rate accounted for less than a quarter of the combined tax rate levied by these five entities.
Supporters say the increased homestead exemption provides necessary tax relief as home values continue to skyrocket—and after council approved approximately $50 million in pandemic-related rental relief. But opponents raised concerns about the percentage-based exemption, which they say disproportionately benefits high-value homeowners and shifts the tax burden onto commercial property owners, who could push it onto renters.
"I know this doesn't come, as with all things, some measure of concern, especially with respect to renters," Adler said. "I think the impact is negligible, but in any event we're doing focused things for renters."
Costs and benefits
Most council members supported the 20% homestead exemption, which they say will provide tangible benefits to their constituents. It is also more palatable thanks to a new state policy, which means an increased homestead exemption would no longer affect the city's total property tax revenue.
Just now: #ATXCouncil unanimously approved increasing Austin's homestead exemption to 20%! We will also be approving millions of dollars in rental assistance, and a huge investment in housing for the currently homeless. We are using all the tools we have to keep Austinites here.
— Paige Ellis, City Council District 8 (@PaigeForAustin) June 10, 2021
District 3 Council Member Sabino "Pio" Renteria said last Thursday that his East Austin constituents would welcome such tax relief given that home prices have risen sharply in recent years. He purchased his own home 42 years ago for $21,000; it is now valued for $668,000.
District 10 Council Member Alison Alter, whose district has the highest median appraised home value, said the measure was a corollary to recent rental assistance, eviction moratoriums and other tenant relief programs. "We have provided something around $50 million in relief for renters through the pandemic but have been unable to find ways to do the same for our homeowners," she said during a June 1 work session.
District 4 Council Member Greg Casar raised concerns that a 20% homestead exemption would only deepen inequity by offering the greatest benefit to the highest-value homeowners at the expense of commercial property taxpayers, who will be required to make up the difference. But he ultimately supported the measure. "Unfortunately too small a benefit to working class homeowners is still a benefit," he said last week.
Mayor Pro Tem Natasha Harper-Madison a worried that it would provide too little relief to the typical homeowner. "I think to say that this strikes me as the opposite of equitable might be an understatement," she said at the same meeting. "I don't know that $12 a month is worth it."
Community activist Julio Gonzalez Altamirano criticized the 20% homestead exemption as a "capitulation to wealth and innumeracy" in a tweet last week.
City Council is prohibited by state law from implementing a flat rate homestead exemption, even though some council members and residents would prefer it.
"This is not perfect," Adler said during the June 1 work session. "There are some people who are not getting the benefit we would want them to get or are going to get burdens we don't want them to get. But, on balance, I think this is providing really important relief to people that need that relief."
- Gentrification in East 11th St. Austin pushes out Black people ... ›
- Travis Central Appraisal District says it will reappraise homes in ... ›
- Travis County property owners can expect rising appraisals - austonia ›
- Austin's home appraisal rates are up 56% for homeowners amid housing boom - austonia ›
If you are a committed, grunge-wearing resident of the Pacific Northwest, it is easy–almost automatic–to look at Texas as an extraordinarily dry, hot and culturally oppressive place that is better to avoid, especially in the summer. Our two granddaughters live with their parents in Portland.
Recently we decided to take the older girl, who is 15, to Dallas. Setting aside the summer heat, a Portlander can adjust to the vibes of Austin without effort. So let’s take Texas with all of its excesses straight up. Dallas, here we come.
Our 15-year-old granddaughter and her sister, 12, have spent summer weeks with us, usually separately so that we could better get to know each individually. In visits focused on Austin and Port Aransas, the girls seemed to be developing an affection for Texas.
Houston and Dallas are two great American cities, the 4th and 9th largest, each loaded with cultural treasures, each standing in glittering and starchy contrast to Austin’s more louche, T-shirts and shorts ways.
Three hours up I-35, Dallas loomed before us as a set of gray skyscrapers in a filmy haze, accessed only through a concrete mixmaster of freeways, ramps and exits. I drove with false confidence. Be calm, I said to myself, it will all end in 10 minutes under the hotel entrance canopy. And it did.
The pool at the Crescent Court Hotel in Dallas. (Crescent Court Hotel)
We stayed three nights at the Crescent Court Hotel ($622 a night for two queens), a high-end hotel in Uptown, patronized by women in white blazers, business people in suits, and tall, lean professional athletes, their shiny Escalades and Corvettes darting in and out, and other celebrities like Bill Barr, the former attorney general who shoe-horned his ample self into a Toyota.
Each morning as I walked to Whole Foods for a cappuccino, a fellow identified by a bellman as Billy the Oilman arrived in his Rolls Royce Phantom. Where does he park? “Wherever he wants to. He likes the Starbucks here.”
We garaged our more modest set of wheels for the visit. We were chauffeured for tips by Matt Cooney and Alfonza “The Rev” Scott in the hotel’s black Audi sedan. They drove us to museums, restaurants and past the enclaves of the rich and famous. In Highland Park, The Rev pointed out the homes of the Dallas Cowboys' Jerry Jones and Troy Aikman along with the family compound of the Hunts, oil and gas tycoons.
The Dallas Museum of Art’s “Cartier and Islam” exhibit (until Sept. 18) attracted an older crowd; the nearby Perot Museum of Nature and Science was a powerful whirlpool of kids’ groups ricocheting from the Tyrannosaurus Rex to the oil fracking exhibit. Watch your shins.
A Geogia O'Keeffe oil painting called "Ranchos Church, New Mexico" at the Amon Carter Museum of Modern Art. (Rich Oppel)
For us, the best museum was the Amon Carter Museum of Modern Art in Fort Worth, a 50-minute, madcap drive away via a 75 mph toll lane along I-30. Don’t try it during rush hour. The Carter has an exquisite collection of Remington paintings and sculptures and an excellent array of 19th and 20th-century paintings as well. Pick one museum? The Amon Carter. Peaceful, beautiful, uncrowded, free admission and small enough to manage in two hours.
The Fort Worth Stockyards, a place of history (with a dab of schmaltz), fun and good shopping, filled one of our mornings. The 98 acres brand the city as Cowboy Town, with a rodeo and a twice-daily (11:30 a.m. and 4 p.m.) cattle drive. We shopped for boots, drank coffee and watched the “herd” of 18 longhorns. So languid was their progress that if this were a real market drive the beef would have been very tough and leathery before it hit the steakhouse dinner plate.
The cattle drive at the Fort Worth Stockyards. (Rich Oppel)
But we could identify: the temperature was 97. “I saw a dog chasing a cat today,” said the emcee, deploying a very old joke. “It was so hot that both were walking.”
With limited time, we chose three very different restaurants:
- Nobu, in the Crescent Court Hotel; Jia, a modern Chinese restaurant in Highland Park; and Joe T. Garcia’s in Fort Worth. Nobu’s exotic Japanese menu set us back $480, with tip, for four (we had a guest), but it was worth it.
- Jia was an ordinary suburban strip mall restaurant, but with good food and a reasonable tab of $110 for four.
- Joe T.’s is an 85-year-old Fort Worth institution (think Matt’s El Rancho but larger), a fine Mexican restaurant where a meal with two drinks was $115.
Sushi at high-end restaurant Nobu. (Crescent Hotel)
It was all a splurge for a grandchild’s visit. Now we will get back to our ordinary road trips of Hampton Inns, where a room rate is closer to the Crescent Court’s overnight parking rate of $52. And to corner cafes in small towns.
Did Dallas change our 15-year-old’s view of Texas? “Yes. I think it’s a lot cooler than I did. The fashion, the food.” So, not only Austin is cool. Take Texas as a whole. It’s a big, complex, diverse and wonderful state.
Giga Texas, the massive Tesla factory in southeast Travis County is getting even bigger.
The company filed with the city of Austin this week to expand its headquarters with a new 500,000-square-foot building. The permit application notes “GA 2 and 3 expansion,” which indicates the company will make two general assembly lines in the building.
More details about the plans for the building are unclear. The gigafactory has been focused on Model Y production since it opened in April, but the company is also aiming for Cybertruck production to kick off in mid-2023.
While there is room for expansion on the 3.3 square miles of land Tesla has, this move comes after CEO Elon Musk’s recent comments about the state of the economy and its impact on Tesla.
In a May interview with Tesla Owners Silicon Valley, Musk said the gigafactories in Berlin and Austin are “gigantic money furnaces” and said Giga Texas had manufactured only a small number of cars.
And in June, Musk sent a company wide email saying Tesla will be reducing salaried headcount by 10%, then later tweeted salaried headcount should be fairly flat.
- Grand opening of Giga Texas faces push back from the community ... ›
- Giga Texas may start production of Model Y's this week - austonia ›
- Tesla hosts Cyber Rodeo grand opening party for Giga Texas ... ›
- Musk: Recently opened Giga Texas is a gigantic money furnace ... ›
- Elon Musk is spotted driving a Cybertruck through Giga Texas ... ›
- PHOTOS: Peek inside the Tesla Gigafactory producing Model Ys in ... ›
- Cyber Rodeo: what we know about the Giga Texas opening party ... ›
- Excitement over Giga Texas grand opening continues at Tesla Con ›
- Tesla's mileage range on new Model Y lowers - austonia ›