The City of Houston wins final judgment in case involving property tax rate cap

After 14 years of litigation, a state district judge has granted final judgment for Mayor Sylvester Turner and the City of Houston in an important case concerning the property tax rate cap imposed by the City Charter.

Two plaintiffs asserted that the City was required to enforce both of the property tax cap provisions (Propositions 1 and 2) that were on the same 2004 ballot. But Proposition 1 contained a directive that the revenue cap proposition that received the most votes would be enforced. Proposition 1 received more votes.

Plaintiffs also alleged that the City had not implemented either cap correctly. Plaintiffs initially sought refunds, segregation of City funds that allegedly violated the caps and an order requiring that the City comply with both caps in the future.

Judge Daryl Moore granted a partial summary judgment for the City and against plaintiffs, concluding that Proposition 2 should not have been enforced. After a subsequent bench trial, the Court found that “the City has fully complied with Proposition 1 throughout the challenged period.”

“This is one of several important and successful legal outcomes achieved during my administration,” Mayor Turner said. “Any question of whether prior administrations, or my administration, properly adhered to the will of taxpayers has been answered.”