Tax Rate Election

Roadside election poster displayed during a tax rate election campaign in Austin, Texas in 2020
Campaign sign for a 2020 tax rollback election in Austin, Texas.

A tax rate election, also called a rollback election or tax ratification election, is a vote by the voters of a jurisdiction to approve or reject a tax rate proposed by the governing body of a tax unit, such as a school board or city council.

In Texas, voter approval is required if a local government wishes to increase the amount of revenue it collects from property taxes by more than 3.5% per year.

The tax rate at which new revenue would exceed 3.5% is called the “voter-approval tax rate.”

When the governing body of a taxing unit adopts a tax rate that exceeds the 3.5% cap, a rollback election is automatically triggered. (However, water districts have different actions that trigger an automatic election).

The ballot for such an election will have a “for” or “against” proposition. If the majority of votes are cast in opposition to the adopted tax rate, the taxing unit may not raise its tax rate for the current year above the voter-approval tax rate.

Tax elections are held in November. More detailed information about tax rate elections is found in chapter 26 of the Tax Code.

Recent News Coverage

What is Proposition A on the Austin Ballot in 2020? Oct. 13, 2020

The Structural Case Against Rollback Elections, Oct. 2, 2019

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