CORPUS CHRISTI, Texas — Texas Attorney General Ken Paxton has sent letters to more than 130 cities across the state, prohibiting them from raising property taxes above the no-new-revenue rate after they failed to meet state transparency and audit requirements.
The action stems from Paxton's investigation of over 1,000 Texas municipalities to ensure compliance with state tax laws, with a specific focus on adherence to financial transparency standards.
The enforcement action follows the passage of SB 1851 during the 2025 legislative session, which directly links cities' ability to raise property taxes to their compliance with Texas financial statement audit and transparency requirements. Under the new law, cities that fail to meet these standards are barred from raising property taxes above the no-new-revenue rate.
Last month, Paxton's office demanded documents from over 1,000 municipalities as part of the ongoing statewide compliance investigation. The review identified more than 130 cities that failed to meet the statutory requirements for the current fiscal year.
The letters sent to non-compliant cities notify them that they are now subject to the enforcement provisions and penalties established under SB 1851. These municipalities may not adopt property tax increases above the no-new-revenue rate until they come into compliance.
Paxton's office emphasized that this represents only an initial list of non-compliant cities, with the investigation continuing. The Attorney General's Office plans to take further action as more cities are found to be failing to meet audit requirements.
"I will not allow cities to unlawfully raise taxes on hardworking Texans," Attorney General Paxton stated. "That is why I took aggressive action against over 130 Texas cities to hold them accountable and ensure they comply with state law."
Paxton added that cities cannot ignore state audit requirements without facing consequences, pledging his office will continue aggressive enforcement of Texas law to protect taxpayers statewide.
The following list of cities have been sent violation determination letters:
Alpine, Aspermont, Baird, Balch Springs, Balmorhea, Bedias, Berryville, Big Spring, Bishop, Blooming Grove, Blue Mound, Briarcliff, Brookside Village, Buffalo Gap, Calvert, Cameron, Campbell, Centerville, Chico, Chireno, Clarksville, Clear Lake Shores, Combine, Corrigan, Crane, Cross Timber, Crowell, Crystal City, Cuero, Dalhart, Danbury, De Leon, Eagle Lake, Elkhart, Eureka, Eustace, Fairfield, Farwell, Flatonia, Franklin, Fritch, Fulton, Gordon, Grandfalls, Gregory, Groesbeck, Groom, Hale Center, Hamilton, Hearne, Hempstead, Higgins, Hillcrest Village, Horizon City, Howardwick, Howe, Huntington, Industry, Ingleside On the Bay, Jewett, Jonestown, Keene, Kemah, Kenedy, Kerens, Kermit, Lamesa, Livingston, Lott, Lumberton, Manvel, Marquez, McCamey, Megargel, Menard, Mertzon, Mexia, Miami, Midway, Miles, Mount Enterprise, Natalia, New Home, New Waverly, Newcastle, Oyster Creek, Paducah, Panorama Village, Pelican Bay, Pleak Village, Plum Grove, Port Lavaca, Quanah, Red Lick, Redwater, Rockdale, Rocksprings, Roma, Rusk, San Elizario, San Felipe, San Perlita, Seabrook, Shepherd, Smiley, Snyder, Somerville, Southmayd, Spring Branch, Spur, Sterling City, Stinnett, Sunray, Surfside Beach, Taft, Tehuacana, Texas City, Texline, Three Rivers, Tiki Island, Tom Bean, Tool, Turkey, Valley Mills, Valley View, Victoria, Weslaco, Weston Lakes, Wharton, Wickett, Wimberley, Wolfe City, Woodloch, Yantis, and Yoakum.
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