Texas Attorney General Ken Paxton has launched a sweeping investigation of nearly 1,000 cities statewide to verify compliance with financial transparency laws and prevent illegal tax increases.
The probe, announced on Tuesday, represents a major enforcement push under recently enacted legislation. The investigation could block cities from raising property taxes if they fail to meet state audit and disclosure requirements. It marks an aggressive use of new enforcement powers granted under Senate Bill 1851.
SB 1851 prohibits municipalities from increasing taxes above the no-new-revenue rate unless they strictly follow Texas financial transparency rules. Paxton has already sent cease-and-desist letters to La Marque, Odessa, Tom Bean, and Whitesboro for alleged violations.
The attorney general’s office discovered widespread noncompliance during those initial investigations. Now, Paxton is proactively requesting financial documents and audit information from cities across Texas.
“Local officials will not be allowed to ignore the law, cover up their finances, and burden Texans with never-ending tax increases,” Paxton said. “Our cities and municipalities must prioritize transparency and minimizing the tax burden of every citizen across the state.”
Major cities under review include Houston, San Antonio, Dallas, Fort Worth, and Austin. The list also encompasses Galveston, Lubbock, Wichita Falls, McAllen, Beaumont, Amarillo, El Paso, Corpus Christi, Laredo, Texarkana, Brownsville, Waco, and Tyler.
Cities that received information requests must respond promptly or face legal consequences. Paxton warned that noncompliant municipalities “put themselves at significant legal risk.”
“While many cities have already complied with these requirements, I’m launching this review to ensure that the law is universally followed, taxpayers are respected, and local government is accountable to all Texans,” the attorney general said.
The attorney general’s office has created an online complaint form for residents who suspect their local officials are violating the audit requirements. The investigation will continue expanding to additional cities.
