Rep. Ellen Troxclair has introduced House Bill 3879, known as the Texas Taxpayer & Voter Defense Act (TTVD Act), aimed at addressing concerns over tax-rate elections, instead of bond elections, being used to fund large capital projects and the lack of restrictions on project modifications post-voter approval. The announcement was made via a press release.
The TTVD Act seeks to address two "perceived loopholes" in the law presented by this new practice. It establishes rules that prevent municipalities from bypassing bond elections by creating unelected entities and provides legal remedies for taxpayers if municipalities materially alter projects after voter approval.
"Lowering property taxes is the reason I got into public service," said Troxclair, according to the release. "This is a priority not only for me but also for the Legislature and for Governor Abbott. We don’t want local governments creating new ways to increase our taxes and we certainly don’t want schemes that circumvent critical taxpayer protections. This common-sense legislation will defend Texans’ right to transparency and accountability in how their tax dollars are used."
During his State of the State address, Governor Greg Abbott said that "loopholes that increase your property taxes must be banned."
Instead of using a bond election, which places limits on how much debt can be issued, in 2020, the city of Austin asked voters to approve a one-time tax increase of 20.79%. The revenues generated from that tax increase will be transferred to a local government corporation that will then issue bonds. While this practice has never been tried in Texas before now, the legislators worry that more cities in Texas will adopt this strategy if the TTVD Act does not pass.
Troxclair further commented on Austin's Project Connect, stating, "This is a statewide policy that would apply to all local governments in Texas. We don’t want this happening in any cities in Texas. It sounds to me like Project Connect is a mess. The OAG’s office won’t approve their bonds. The Texas Solicitor General has been assigned to a lawsuit against the project’s financing plan." She added, "At $725,000,000 per mile, I have heard it is maybe the most expensive light-rail project in the country, even more expensive than our good friends in California. Impressive. If the mayor and city council want to put a bond in front of voters, they are more than welcome to. I just doubt that voters would approve that, even in Austin."
Troxclair represents Texas House District 19, which includes Blanco, Burnet, Gillespie, Kendall, and western Travis Counties. Elected in 2022, she has served on committees focused on public safety, community safety, and property tax relief. Her legislative work has included efforts related to property tax reductions, border security, sports regulations, and child protection.
