Richardson officials are warning that a slow-building budget crunch is coming for the city, and they are pointing the finger squarely at the state’s cap on property tax revenue. City Manager Don Magner told the City Council that a statewide limit on how fast property tax collections can grow has already cost Richardson about $21 million in new revenue since it took effect. Even with optimistic assumptions, his long-range models show annual net new property tax revenue staying under $1 million through fiscal 2031-32.
How the law limits local revenue
The Texas Property Tax Reform and Transparency Act of 2019, also known as Senate Bill 2, requires voter approval for local governments that want to increase property tax revenue by more than 3.5% per year,…..