Attor­ney Gen­er­al Pax­ton Opens Inves­ti­ga­tion into Love Austin PAC and Affil­i­at­ed Orga­ni­za­tion for Oper­at­ing Scheme to Pass Prop­er­ty Tax Increase

Attorney General Ken Paxton is launching investigations into multiple organizations regarding a potentially illegal fundraising scheme designed to pass Proposition Q (“Prop Q”) in Austin, TX, which is a ballot measure that would raise property taxes. 

In an effort to pass Prop Q, which will be on the November 4 ballot, non-profit organization Foundation Communities, Inc. (“Foundation Communities”) has reportedly pledged to donate $25,000 to the Love Austin Political Action Committee (“Love Austin PAC”). Foundation Communities stands to financially benefit from the passage of Prop Q, as it would likely receive a portion of the funds collected by raising Texans’ property taxes. 

As part of the investigation, Attorney General Paxton has issued a Request to Examine (“RTE”) to both Foundation Communities and Love Austin PAC. Attorney General Paxton is investigating to determine if any laws have been broken related to non-profit compliance with campaign finance laws. 

“Every non-profit, including Foundation Communities, that is unlawfully contributing to an effort to squeeze more taxes out of Texans must immediately stop,” said Attorney General Paxton. “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.” 

Attorney General Paxton has shown he will take aggressive legal action against any non-profit that engages in illegal electioneering, and he stands ready to continue to do so against any organization unlawfully funding Love Austin PAC. Relatedly, the Fifteenth Court of Appeals recently ruled that Attorney General Paxton can move forward in initiating quo warranto proceedings against a radical, open borders non-profit that engaged in illegal political activities.