Austin passes increase in property tax levy

City of Austin and Mower County consider tax increases

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(ABC 6 News) — The Austin City Council voted at their Monday December 16 meeting to approve the city’s budget for fiscal year 2025, including an increase in the city’s property tax levy by 11.97%.

This would mean that the average owner of a $160,000 home in Austin will see their city property taxes raised by $70 to $80, according to Mayor Steve King.

“The number is realistic,” said King, “In order to provide a functioning city [with] law enforcement and fire protection, sewers and roads and and bridges and the things that the city provides.”

The city approved the $9.8 million levy to avoid direct cuts to staffing, whose costs account for 69% of the $50 million annual budget.

“So every every city is feeling a little bit of pinch right now,” said King, “And whether it’s just the economy, inflation, just the cost of living wages, certainly they’re going up. But we need a functioning city. And that’s what we’re here to provide.”

The City of Austin’s tax levy represents about 37% of the tax capacity (37 cents of every local property tax dollar paid comes to the City). Mower County receives 28%, the Austin Community School District receives 34%, and the Watershed/HRA receives the other 1%.