Dallas is $5 million short in sales tax revenue amid rising costs
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By Everton Bailey Jr.
Published on March 20, 2026.
Dallas is $5 million short in sales tax revenue due to rising costs and a state-mandated 3.5% property tax revenue cap, while revenue is growing by only about 2% over the last year, according to Chief Financial Officer Jack Ireland. The city is also considering closing pools and libraries to save money, while facing pressure to increase annual police-related spending through a 2024 voter-approved charter mandate. This comes as the city debates whether to repair or relocate its nearly 50-year-old City Hall, which is expected to cost over $1 billion over 20 years to modernize. The University of Texas at Dallas professor, Steven Haynes, believes this shortfall is indicative of deeper economic changes affecting Dallas. The upcoming FIFA World Cup could provide a financial boost but also present challenges for the city due to a slowdown in middle-class spending, which has historically been a major driver of local tax revenue.
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