Analysis: El Paso Is a Low-margin Transit Economy Rather Than A High-Tax-Yielding Economic Powerhouse Because Of Poor Leadership

EL PASO, Tx., November 6, 2025: El Paso homeowners face some of the highest property tax rates in Texas despite having modest median incomes and home values. The high tax burden stems from an overreliance on a narrow residential-heavy tax base helped along by a fragmented local governance model where public services are duplicated. This model leads to higher taxes for El Paso’s homeowners. The two problems El Paso faces are the over dependence on a government economy and duplicate government services.

Case in point is the cost to El Pasoans for two police forces in a community already with a heavy law enforcement presence from federal and state law enforcement agencies in the city. The El Paso Police Department, a costly tax center for residents of the city patrols the city limits while the El Paso Sheriff’s Department, another heavy cost to the taxpayers, has jurisdiction over the county and the city limits. Additionally, the sheriff’s department cannot be eliminated because it is a state-mandated agency. El Paso PD is around 32% of the city’s budget and costs each El Paso resident over $200 annually. Around $140 million of the police department’s budget of around $158 million goes towards labor costs. This is an example of both duplicated services and the overreliance on a government economy. The elimination of the El Paso Police Department would immediately lead to a reduction in taxes for El Paso’s homeowners.

But any attempt to eliminate the police force runs headlong into another heavy tax problem for El Paso, the overreliance on governmental jobs for economic development. This is in addition to political turf wars where elected officials aren’t willing to make decisions without considering the effect on their political futures. Any attempt to merge the El Paso Police Department into the sheriff’s department will result in the police union mobilizing to threaten any elected official looking towards that as a solution to high taxes…

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