Lawsuit says Travis County commissioners stretched rules for tax hike

Lago Vista Mayor Shane Saum and Jeff Bowen filed suit against Travis County Thursday, alleging officials misused a disaster exemption to push a 9.12% property-tax hike.

Two local political figures and Travis County taxpayers are suing county officials, alleging they illegally used a disaster tax to justify a 9.12% property tax hike.

The Travis County Commissioners Court approved a temporary property tax hike in September that will add about $200 to the average homeowner’s bill next year and generate roughly $42.2 million in additional revenue. Under a 2019 state law, local governments can increase property tax revenue by up to 3.5% annually without voter approval. However, the law allows a one-time increase of up to 8% if the county received a disaster declaration from the governor that year.

The lawsuit — filed on Thursday by newly elected Lago Vista Mayor Shane Saum and former Austin mayoral candidate Jeff Bowen — argues that Travis County Judge Andy Brown and the commissioners exceeded their legal authority by using the disaster declaration exemption. The plaintiffs contend the exemption applies only to funds necessary to respond to a specific disaster. They say the county cited the July 4 flooding as justification but raised $42 million in new revenue, more than twice the roughly $20 million in added costs attributed to the flood.

"Travis County used a disaster declaration meant to help flood victims as an excuse to raise taxes beyond what was necessary," Saum said. "We’re standing up for taxpayers who expect their leaders to act within the law, not around it."

Travis County spokesperson Hector Nieto said that the county suffered "incredible" damages during the July flood, an event that requires the use if resources from across the county. The county responded immediately, he said, and the tax code provided an avenue to assist in covering the cost that quick and broad response requires.

“The Travis County Commissioners Court carefully considered and followed the law created by the Texas Legislature when adopting the FY 2026 tax rate," Nieto said. "We disagree with the allegations made in the lawsuit and look forward to defending our case in a court of law.”

Saum and Bowen are being represented by former Travis County Judge Bill Aleshire and attorney and author David B. Brooks. Aleshire, who also served as county tax collector in the 1980s, said the commissioners court acted "lawlessly and foolishly" at a time when residents are looking for tax relief. He said the tax increase should have gone to a vote instead.

The lawsuit comes days after Austin voters sternly rejected a 20% property tax increase as the city struggles to overcome a budget deficit.