Truth in Taxation Summary

What Truth in Taxation requires

Texas Tax Code Chapter 26 sets out Truth in Taxation. It requires every taxing unit (county, city, school district, water district, and so on) to publish specific notices when the proposed tax rate would raise more revenue than the year before. These notices explain the proposed rate, the no-new-revenue rate (the rate that would produce the same revenue), and the voter-approval rate (the maximum rate the unit can adopt without triggering an automatic election).

Where to find the disclosures

Every taxing unit that levies a property tax on Travis County residents publishes its Truth in Taxation disclosures on its own website. The Travis County Tax Assessor-Collector publishes a consolidated summary each year covering the county, cities, and school districts served by the Tax Office. The summary is posted in late July or early August, once all taxing units have set their proposed rates.

Three rates you will see

The disclosures compare three rates:

• Proposed rate. The rate the taxing unit intends to adopt for the coming year.
• No-new-revenue rate. The rate that would raise the same total revenue as the prior year from the same properties. Also called the effective tax rate in older references.
• Voter-approval rate. The maximum rate the taxing unit can adopt without triggering a mandatory election. Set higher than the no-new-revenue rate to allow for growth and new services, but capped at 3.5% growth for most units under recent state law.

If the proposed rate is above the voter-approval rate, a mandatory election is held on the November general election ballot. Voters approve or reject the rate.

Where to learn more

The Texas Comptroller of Public Accounts publishes a Truth in Taxation guide for property owners with worked examples. The Travis Central Appraisal District posts each taxing unit's disclosure notice on the Travis County property tax portal.