Texas Attorney General Ken Paxton has launched an investigation of nearly 1,000 cities to ensure city budgets are transparent and any tax increases above the no-new-revenue rate comply with the law. The cities under review include Houston, Dallas, and San Antonio, according to a statement from the Attorney General’s office.
Paxton’s action enforces SB 1851, which bars cities from raising taxes if they fail to meet Texas’s audit and transparency requirements. The initiative follows cases like La Marque and Odessa, where tax hikes were blocked for not meeting legal standards. According to the Attorney General's website, Paxton said, "Local officials will not be allowed to ignore the law, cover up their finances, and burden Texans with never-ending tax increases."
Municipalities now face potential legal challenges if they fail to comply with audit requirements. The Attorney General’s office is sending information requests and has created a complaint form on its website for Texans to report suspected violations.
According to the Attorney General's website, while many cities have complied with financial rules, Paxton’s statewide review seeks to protect taxpayers from illegal tax increases. He stated, "Our cities and municipalities must prioritize transparency and minimizing the tax burden of every citizen across the state." Cities are urged to comply quickly or risk legal consequences.
