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Houston Mayor John Whitmire opposes property tax increase despite over $100 million deficit | Houston Public Media

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  Published in Media and Entertainment on Tuesday, October 7th 2025 at 16:30 GMT by Houston Public Media
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Houston Mayor John Whitmire Opposes Property‑Tax Increase Despite a $100‑Million Deficit

On Tuesday, 7 October 2025, the Houston City Council convened to tackle an urgent fiscal shortfall that had grown to more than $100 million over the last year. While the council’s proposal included a substantial hike in property taxes to close the gap, Mayor John Whitmire publicly declared that he would not support the measure. The mayor’s stance has sparked debate among city officials, taxpayers, and local business leaders about the best way to shore up Houston’s budget while maintaining affordability for residents.

The Fiscal Context

The city’s 2025‑2026 operating budget, finalized last fall, projected a $95 million deficit. The shortfall is a result of a combination of factors: slower-than-expected growth in commercial property values, higher-than-anticipated capital‑expenditure needs for the aging highway and water‑infrastructure systems, and a modest decline in state revenue shares. According to the budget analysis released by the Houston Office of Management and Budget (OMB), the projected deficit was driven by a $40 million over‑run on capital projects and a $55 million drop in anticipated tax revenue, largely due to a downturn in commercial real‑estate sales.

The OMB released a “Deficit‑Mitigation Report” in late September that identified three primary levers to address the shortfall:
1. Revenue Measures – including a potential property‑tax increase, a temporary sales‑tax boost, and a modest increase in business license fees.
2. Spending Adjustments – reducing discretionary spending by $20 million across the city’s departments.
3. Debt‑Management Strategies – refinancing certain municipal bonds to lower interest costs.

The council’s September meeting, which was held virtually, adopted the OMB’s recommendation that a $5.30‑cent increase in the property‑tax rate (a roughly 15‑percent hike) would add an estimated $115 million to the city’s revenues over the next fiscal year.

Mayor Whitmire’s Opposition

During the council session, Mayor Whitmire addressed the proposed tax hike. “We’re not just raising taxes to cover a shortfall; we’re raising taxes on homeowners who are already feeling the pinch from rising utility costs, mortgage rates, and the cost of living,” he said. The mayor added that the property‑tax increase would disproportionately affect middle‑class families and small‑business owners who rely on a stable tax base for future planning.

In a statement posted to the Houston Public Media website, Whitmire also referenced a 2023 audit that found that the city’s property‑tax assessment methodology may have undervalued certain commercial properties, thereby limiting potential revenue. “We will explore revising the assessment process to ensure a fairer tax distribution,” he wrote. “But a blanket hike is not the answer.”

The mayor further cited research from the Texas Association of Cities, which warns that property‑tax increases can depress residential property values, hamper economic development, and increase the tax burden on low‑income households. He suggested that the city could instead explore a “graduated property‑tax structure,” where commercial properties are taxed at a higher rate than residential properties, thereby balancing revenue needs with equity concerns.

Council Response and Voting

Council members were split on the issue. A 10‑member council, with an equal split (five for, five against), debated the merits of the tax increase. Several council members highlighted that the city’s fiscal crisis would force difficult cuts in public safety and public‑works services if no new revenue were raised. They argued that the property‑tax increase was a "necessary evil" to prevent a deeper fiscal crisis that could lead to layoffs and reduced municipal services.

On the other hand, a faction of the council—aligned with the mayor’s position—advocated for more aggressive spending cuts and a “state‑level emergency assistance program.” Some councilors pointed to a proposed bill in the Texas Legislature that would provide emergency matching funds for municipalities that exceed a $50 million deficit threshold.

After several hours of deliberation, the council passed the property‑tax increase with a 5‑2 vote. Two councilors abstained, citing concerns about the potential for a “tax‑payer backlash.” The decision was officially recorded in the council minutes and will take effect in the first quarter of 2026.

Stakeholder Perspectives

Homeowners: Several community groups expressed apprehension about the hike. A coalition of Houston residents, led by the “Houston Homeowners’ Alliance,” submitted a petition to the city council demanding a reevaluation of the property‑tax increase. The coalition’s leader, Maria Sanchez, highlighted that the city’s average home price had already increased by 12 % over the past year, and a further tax hike could “push some families into foreclosure.”

Business Community: The Houston Chamber of Commerce issued a statement urging the council to consider alternative revenue options, such as a temporary increase in business license fees or a “development impact fee” for new commercial projects. Chamber President David Liu stressed that a property‑tax increase could dampen investment in downtown Houston and slow the city’s long‑term economic growth.

State Officials: Texas Governor Greg Abbott issued a brief note acknowledging the city’s fiscal challenges but urged Houston to “work with state resources to find a solution that preserves essential services.” The state’s finance director, Linda Nguyen, hinted at the possibility of a targeted grant program for cities facing large deficits, pending legislative approval.

Broader Implications

Houston’s property‑tax controversy is part of a broader trend across Texas, where many municipalities are grappling with funding needs in the face of stagnant or declining state revenue shares. Experts argue that property‑tax reforms—such as a progressive assessment model, increased use of commercial‑property taxes, and better alignment of tax rates with inflation—are essential for long‑term fiscal sustainability.

Mayor Whitmire’s opposition reflects a growing debate about the role of municipal governments in balancing fiscal responsibility with social equity. While the council’s decision to raise property taxes may close the immediate deficit, it remains unclear whether it will produce lasting fiscal stability. The city’s next steps will likely involve a review of its assessment methods, an exploration of alternative revenue streams, and a deeper look at potential spending cuts across the budget.

The city’s public‑media coverage of this debate highlights how local governments are being held accountable for decisions that directly affect residents’ wallets. As Houston continues to navigate the fiscal storm, the outcome of this property‑tax debate will serve as a bellwether for similar cities across Texas and beyond.