Property taxes

As federal funding dries up, cites are searching for new funding sources.

Houston and other Texas cities face financial pressure caused by weather disasters, public safety salaries and pensions, or capped property tax collections.

The districts, which finance public infrastructure for housing developments, are dealing with limited revenue growth and state actions to cut property taxes.

Stagnant per-pupil state funding amid rising costs led to budget deficits, lower reserves, and ballot proposals to raise property tax rates for some districts.

Initiatives planned for the Nov. 5 ballot raised concerns in the state's municipal bond market over higher borrowing costs and litigation.

Property taxpayers want a state court to order the city to reduce its 2024 tax levy by $187 million earmarked for a now-downsized mass transit plan.

State lawmakers will be back in session Aug. 26 in an effort to head off ballot initiatives that worry the state's public finance industry.

Municipal bond market participants say a proposed constitutional amendment targeting property tax revenue would increase borrowing costs and lead to litigation.

Nebraska Gov. Jim Pillen called a special legislative session for July 25 so lawmakers can consider his plan for property tax reform after his April attempt fell short.

The rating agency said legislation signed into law this month to limit annual property tax revenue growth to 5.5% could reduce commercial property collections.