AG Paxton Probes ‘Scheme’ by Nonprofit and PAC To Raise Austin Property Taxes

Attorney General Ken Paxton has launched an official investigation targeting the Love Austin PAC and its affiliate, Foundation Communities, Inc., over an alleged scheme designed to raise property taxes through Proposition Q in Austin. 

The probe follows reports that Foundation Communities, a non-profit that could benefit financially if the tax hike passes, promised a $25,000 donation to the Love Austin PAC—the group spearheading support for the controversial ballot measure.​

Paxton’s office issued a “Request to Examine” to both organizations, seeking to determine whether any laws were violated related to campaign finance or non-profit compliance. 

At the center of the inquiry is whether Foundation Communities, which receives government funding, is circumventing rules that bar non-profits from contributing unlawfully to political campaigns in exchange for the promise of future benefits.

“Every non-profit, including Foundation Communities, that is unlawfully contributing to an effort to squeeze more taxes out of Texans must immediately stop,” Paxton said. “It’s a sham, and it could be illegal. We will determine if there is an illegal scheme where organizations that are funded by the government pour money into raising the tax rate in return for potential future benefits.”

Paxton cited a recent legal victory allowing his office to pursue charges against another non-profit for illegal political activity. He vowed to take aggressive legal action against any group unlawfully funding the Love Austin PAC or similar efforts.

Proposition Q is on the November 4 ballot and, if approved, would increase property taxes in Austin. 

Critics argue that beneficiaries like Foundation Communities have a direct stake in the outcome due to the allocation of new tax revenues, making the alleged payments a potential conflict of interest.

This investigation comes as Gov. Greg Abbott has taken visible steps this week to address public concerns over homelessness and urban disorder in major Texas cities. State crews conducted cleanup operations at large homeless encampments, reinforcing state officials’ commitment to addressing public order throughout Austin and beyond.

Election Day is November 4. Early voting is ongoing through October 31. 

Sydnie Henry

A born and bred Texan, Sydnie serves as the Managing Editor for Texas Scorecard. She graduated from Patrick Henry College with a B.A. in Government and is utilizing her research and writing skills to spread truth to Texans.