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Prop 2

'No on Prop 2' campaign steps up opposition to property tax increases
IMMEDIATE RELEASE

'No on Prop 2' campaign warns voters to beware of property tax increases

Deceptive ballot language removed 'ad valorem tax increases' from ballot

(October 25, 2021 — San Antonio, Texas) Texans Uniting for Reform and Freedom (TURF) and Texans for Toll-free Highways PAC, issued a warning to voters that the constitutional amendment known as Proposition 2 on the ballot November 2 (with early voting already underway) guarantees property tax increases to pay for Transportation Reinvestment Zones (TRZs), if voters approve the measure.

"Voters beware! Your already sky high property tax bills will go up even more if voters give counties the authority to create TRZs, which are backed by property tax increases," warns Terri Hall, Founder/Director or Texans Uniting for Reform and Freedom (TURF) and Texans for Toll-free Highways, PAC. "Prop 2 guarantees more property tax increases are coming."
Constitutional amendment challenged by TURF, other groups gets oral arguments
Link to article here.

Challenge to 'Misleading' 2021 Texas Ballot Proposition Continues on Appeal

Grassroots groups have challenged the validity of the ballot language.
- By Kim Roberts, The Texan,January 16, 2024
A challenge to a 2021 Texas constitutional amendment ballot proposition was heard by the 7th Court of Appeals in Amarillo last week.

Proposition 2 allowed counties to create transportation reinvestment zones (TRZ), a power they did not previously have. According to the Texas Department of Transportation, a TRZ is a kind of tax increment financing district where a “zone is created, a base year is established, and the incremental increase in property tax revenue collected inside the zone is used to finance a project in the zone.”

Several conservative grassroots groups — including Texans Uniting for Reform and Freedom (TURF), Grassroots America, We the People, and True Texas Project (TTP) — sued the Texas Secretary of State to have the 2021 approval of Proposition 2 declared void by Gov. Greg Abbott.
Grassroots Groups Prevail in Appeal Challenging 2021 Ballot Proposition Language
View the article...

The 7th Court of Appeals issued its opinion in favor of the contest, which could void the election.
- By Kim Roberts, The Texan,January 26, 2024
The 7th Court of Appeals in Amarillo ruled in favor of grassroots groups that challenged constitutional amendment ballot language from the November 2021 election.

The True Texas Project (TTP), Texans Uniting for Reform and Freedom (TURF), and Grassroots America – We the People sued the Texas Secretary of State to have the 2021 approval of Proposition 2 declared void by Gov. Greg Abbott, claiming the ballot language was “incomplete, inaccurate, and did not adequately describe what the electorate was actually voting on.”

Proposition 2 allowed counties to create transportation reinvestment zones (TRZs), a power they did not previously have. According to the Texas Department of Transportation, a TRZ is a kind of tax increment financing district where a “zone is created, a base year is established, and the incremental increase in property tax revenue collected inside the zone is used to finance a project in the zone.”

The proposition did not include language about the use of increased ad valorem taxes to pay bonds or notes issued by the county in the TRZ district. A similar measure in 2011 that included such language was voted down.
TURF and grassroots groups sue state over ballot deception on Prop 2
Link to article here.

Grassroots Groups Challenge Constitutional Amendment, Arguing Property Tax Ballot Language Was Omitted

Three grassroots groups have filed an election contest lawsuit seeking to set aside the passage of Proposition 2, claiming that the ballot language was misleading.

By Kim Roberts
The Texan
November 10, 2021

An election contestlawsuithas been filed against the Texas Secretary of State seeking to declare the passage of Proposition 2 void based on “the validity of the ballot language used in the election.”

True Texas Project, Texans Uniting for Reform and Freedom (TURF), and Grassroots America — We the People filed the lawsuit on behalf of their leaders and the registered voters they represent.

Before filing the suit, the groups attempted to remedy the ballot language by submitting arequest in August to Deputy Secretary of State Jose Esparza. They received no reply. At that time the position of secretary of state was vacant, but Governor Greg Abbott recentlyappointed John Scott to fill the post.

“This cuts to the heart of why people don’t participate in these elections. There is so much trickery in the wording of the propositions. It takes work to understand them,” TURF Director Terri Hall toldThe Texanin an interview. “Legislators deliberately tried to deceive voters about the tax implications of the proposition.”

The lawsuit points out the differences in ballot language between Proposition 2 this year and the language used in 2011 when the same measure failed.

A comparison of the most recent ballot language to the previous language demonstrates the difference. No language related to “ad valorem,” or property taxes, was included in 2021.

“The constitutional amendment authorizing a county to finance the development or redevelopment of transportation or infrastructure in unproductive, underdeveloped, or blighted areas in the county,” the ballot read in 2021.

Compared with 2011 when it read, “The constitutional amendment authorizing the legislature to permit a county to issue bonds or notes to finance the development or redevelopment of an unproductive, underdeveloped, or blighted area and to pledge for repayment of the bonds or notes increases in ad valorem taxes imposed by the county on property in the area. The amendment does not provide authority for increasing ad valorem tax rates.”

When the more descriptive ballot language was used in 2011, the ballot measure lost by a margin of almost 20 points. In the recent election where no language about taxes was included, the measurepassed by over 25 percentage points.

“This demonstrates that the ballot language was not transparent. Now counties can issue debt without going to the voters and property taxes will continue to go up,” Hall remarked.

The lawsuit asserts that “State law requires that a proposition be described with such definiteness and certainty that the voters are not misled.” It adds that the misleading nature can include “omitting certain chief features,” in the case omitting language about issuing bonds or notes backed by property taxes.

In contrast to Proposition 2, recent laws passed by the legislature, such as House Bill 3, required that school districts include the language “THIS IS A PROPERTY TAX INCREASE.” on certain ballot propositions.

TURF opposed the measure which allows counties to create transportation reinvestment zones (TRZ). Hall explained that they designate undeveloped or underdeveloped land along a roadway for inclusion in the TRZ, then use the taxes generated by appraisal increases due to development in the area to issue bond debt and improve the road.

This leaves the homeowners in the TRZ holding the bag for bond debt on roads that many residents outside the TRZ likely use. And it increases property tax appraisals that have already been rising rapidly, she added.

The election challenge had to be filed in Travis County, but Hall acknowledges the likelihood of success there is low. She is looking for relief from an appellate court or the Texas Supreme Court.

“This is the last chance for taxpayers to have ballot transparency,” Hall emphasized.
TURF has its day in court on Prop 2 case

Watch the video interview here.

Grassroots Fight Back Against Debt-Raising Constitutional Amendment

A lawsuit alleges misleading ballot language for a constitutional amendment authorizing additional debt.

Brandon Waltens | January 10, 2024

Texas Scorecard

Grassroots organizations are continuing their fight to strike down a constitutional amendment passed in 2021 that would allow counties to issue more taxpayer-backed debt.

Proposition 2, which passed with 63 percent of the vote, authorizes counties to issue bonds (debt) to fund infrastructure and transportation projects in underdeveloped, unproductive, or blighted areas.

A lawsuit alleges that the ballot language that was put before voters failed to comply with common law requirements and was substantially misleading due to an omission of the phrase “ad valorem tax increases.”

Courts have previously ruled that ballot propositions be described with “such definiteness and certainty that the voters are not misled.”

In 2011, the same ballot proposition was put before voters with language noting the tax implications and failed to pass.
TURF wins in court on Prop 2 case....AGAIN!

Appeals Court Sides With Taxpayers on Debt-Raising Constitutional Amendment

The 7th District Court of Appeals says a 2021 statewide constitutional amendment failed to inform voters of its tax implications.

Brandon Waltens | Texas Scorecard | January 26, 2024

Link to article here.

Citizens are celebrating as a court sided with taxpayers this week on a constitutional amendment which was proposed in 2021 and would allow counties to issue more taxpayer-backed debt. In its ruling, the Court set a rule ensuring voters are entitled to more information when proposals will impact taxpayers.

Proposition 2, which passed with 63 percent of the vote, would authorize counties to issue bonds—taxpayer-backed debt—to fund infrastructure and transportation projects in underdeveloped, unproductive, or blighted areas and to use increases in property taxes from those areas to pay off the debt. This is known as “tax increment financing” and is a tool currently reserved for cities.

Grassroots groups filed a lawsuit alleging the Proposition 2 ballot language that was put before voters failed to comply with common law requirements and was substantially misleading because it neglected to inform voters that the proposal involved debt and property taxes.

Courts have previously ruled that ballot propositions must be described with “such definiteness and certainty that the voters are not misled.” But the Proposition 2 language only said it would allow counties to “finance development,” and it neglected to mention debt or taxes.
Vote 'No' on Prop 2 and property tax increases
Link to Op/Ed here.

‘No’ on Prop 2 campaign urges voters to reject property tax increases
Amendment will guarantee rising property taxes
By Terri Hall
Texas Scorecard
October 7, 2021

Texas voters beware! Proposition 2 contains misleading ballot wording to hide the fact that this proposition uses local property tax increases to pay for transportation projects that should be funded by the state using your existing taxes. Prop 2 is the result of House Joint Resolution 99 (authored by Rep. Terry Canales, D - Edinburg) to give counties the ability to issue new road debt using an unpopular method backed by property tax increases called Transportation Reinvestment Zones (TRZs).

Lawmakers already tried to pass this in 2011 (then known as Prop 4), but voters rejected it. Now they think they can get it past voters this November by removing the phrase ‘ad valorem tax increases,’ and include ‘transportation’ (since ballot initiatives for transportation tend to pass with over 80% of the vote). In fact, Prop 2 would authorize counties to divert up to 65% of your property tax increases to projects the state should be funding with your existing road taxes.