AUSTIN – Today, the Texas Public Policy Foundation filed a complaint, on behalf of local taxpayers, against the City of Austin for imposing an unconstitutional tax on utilities customers. The Transportation User Fee (TUF) has been tacked onto utilities bills since the 1990s and can cost households more than $260 per year.
Under the Texas Constitution, a tax must be equal and uniform, and the amount must be tied to property values. Under the Texas Tax Code, a new tax cannot be imposed without voter approval. This so-called “fee” violates all of those requirements.
“When a city wants to impose new taxes, it needs to hold an election so taxpayers have a say before more of their money goes to the government,” said TPPF Attorney Heidi Walusimbi. “Disguising new taxes as fees not only violates Texas law, it gives the City carte blanche to fill its coffers, while silencing the very people who fund it. This case reminds the City that if it wants more funds, it needs to ask first.”
To read the original petition, click here.
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