Texas Attorney General Ken Paxton has launched a review of nearly 1,000 cities across the state to ensure compliance with a new property tax law, his office said Tuesday. The law prevents cities from raising property taxes beyond the previous year if they fail to meet financial transparency requirements.
Paxton’s initiative targets a majority of Texas’ roughly 1,200 cities, including Houston, Dallas, Fort Worth, Corpus Christi, and Waco. His office requested financial documents and other information but did not allege any wrongdoing in its announcement.
In Waco, officials confirmed they received Paxton’s letter on November 21 and submitted all requested documents two days later. A city spokesperson said the submission demonstrated full compliance with state laws and emphasized Waco’s commitment to transparency and fiscal stewardship.
San Antonio also confirmed it will cooperate with the review. Spokesperson Brian Chasnoff noted that the city complies with financial reporting laws and that the initiative will not affect ongoing budget planning.
El Paso, another city included in the review, has not yet been contacted by Paxton’s office. A spokesperson highlighted the city’s consistent compliance with budgeting, tax adoption, and financial reporting requirements, including award-winning audited statements.
State law mandates that cities conduct annual audits and publish financial statements within 180 days after the fiscal year ends. Senate Bill 1851, effective September 1, 2025, bars cities from increasing property taxes beyond the previous year if they fail to meet these reporting requirements. The law also allows residents to file complaints with the attorney general if they suspect noncompliance.
Earlier this year, Paxton sent letters to Odessa, La Marque, Tom Bean, and Whitesboro demanding the suspension of property tax increases, citing concerns about compliance. Officials in these cities maintained they were following the law.
Legal experts note that Paxton’s review reflects a broader conservative effort to reduce property taxes and enforce fiscal transparency. Randall Erben, a law professor at the University of Texas, described the initiative as a “conservative Legislature using the conservative attorney general to impose conservative governance on Texas cities.”
Erben also expressed doubts about the ability to prove wrongdoing given the scope of the probe. He noted that reviewing nearly 1,000 cities would be a highly staff-intensive process.
Paxton’s office said the initiative stems from a pattern of noncompliance with financial reporting requirements. “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.”
The review aims to ensure that city governments follow the law while maintaining accountability to taxpayers. Officials say transparency and proper financial reporting are crucial to controlling property tax increases and preserving public trust.
As the initiative continues, Texas cities are cooperating by providing requested documentation, demonstrating adherence to state law. Observers say the review may set a precedent for stricter oversight of municipal finances and encourage other cities to maintain full compliance with reporting rules.
By targeting both major cities and smaller municipalities, the Attorney General’s office aims to enforce consistency in financial transparency across the state, reducing the risk of unauthorized tax increases and strengthening fiscal accountability.
