The city of La Marque, Texas, is under review after Attorney General Ken Paxton questioned whether its recent property tax increase complies with a new state law. Yesterday, Paxton sent letters to La Marque and other Texas cities, citing Senate Bill 1851, which restricts municipalities that are behind on annual audits from raising taxes beyond the previous year’s revenue, KHOU reports. The law took effect ast month.
On Friday last week, the La Marque City Council voted 3–2 to approve a tax rate increase of two cents per $100 valuation. Interim City Manager Barbara Holly told council members that years of overspending had created financial challenges for the city, according to KHOU.
Paxton responded by warning the city that the increase may be unlawful and announced an investigation into the matter. La Marque officials said they believe the city is not in violation of SB 1851 and stated in a City of La Marque's Facebook post that they will cooperate with the AG’s office.
The city currently has about two weeks of operating funds available, abc13 reported. During a recent council meeting, some residents expressed concerns about the city’s finances and called for greater transparency, KHOU noted.
