Texas Attorney General Ken Paxton has taken a firm stance against property tax increases that he deems unlawful, recently notifying over 130 cities in Texas that they cannot raise property taxes due to non-compliance with a new state law. This initiative is part of an ongoing effort to address the high property tax rates in the state, particularly through the enactment of Senate Bill 1851, which aims to regulate how cities can adjust their tax rates.
Senate Bill 1851, passed in the previous year, stipulates that cities must conduct annual financial audits and publish financial statements based on those audits. Specifically, if a city fails to comply with these requirements, they are prohibited from increasing their property tax revenues beyond what they collected the previous year. This legislation reflects a broader GOP-led campaign to rein in property taxes across Texas, which have become a source of concern for many residents.
In a statement, Paxton underscored his commitment to ensuring that cities do not impose undue tax burdens on Texans. “I will not allow cities to unlawfully raise taxes on hardworking Texans,” he asserted, emphasizing the importance of accountability and adherence to state audit requirements.
Last year, Paxton’s office proactively sought financial documents from approximately 1,200 cities to assess their compliance with the new law. Following this review, it was determined that around 135 cities had failed to meet the necessary requirements, although Paxton’s office has not specified the nature of these compliance failures.
Among the cities identified as non-compliant are Alpine, Balch Springs, Victoria, and Wimberley. Paxton’s office noted that this list represents an initial identification of cities not adhering to the law, with investigations continuing into their financial practices.
However, the law’s implications have raised concerns, particularly among smaller cities. Local leaders argue that the requirements for timely audits can be disproportionately burdensome, as many do not have the resources or personnel to meet the 180-day deadline. The potential penalties for non-compliance, which could restrict tax collection, threaten to further strain already limited budgets in these communities.
The Texas Tribune reached out to several of the notified cities for comment, but responses have yet to be received. Larger cities, such as Houston, Dallas, Fort Worth, and Corpus Christi, have not been included in the list of cities barred from raising taxes, indicating a selective focus in Paxton’s enforcement efforts.
Interestingly, Odessa was previously flagged by Paxton after city officials approved a tax hike. However, after providing documentation to justify their decision, the city has not received further communication from the Attorney General’s office.
