Texas Attorney General Paxton Blocks 132 Cities From Raising Taxes
Texas attorney general Ken Paxton issued formal warning letters Thursday to more than 130 Texas cities, blocking them from raising property taxes after a state review found compliance failures. The cities now face enforcement provisions and penalties under SB 1851 if they stay out of compliance with reporting rules.
SB 1851 and Texas cities
Paxton said, "I will not allow cities to unlawfully raise taxes on hardworking Texans." He added, "That is why I took aggressive action against over 130 Texas cities to hold them accountable and ensure they comply with state law" and, "Cities cannot fail to abide by state audit requirements without consequences."
The law at the center of the action, SB 1851, was passed during the 2025 legislative session. It bars cities from adopting property tax rates above the no-new-revenue level if they remain out of compliance with state-mandated financial reporting.
Attorney General Office probe
The Attorney General’s Office launched a probe last month and demanded documentation from over 1,000 municipalities to verify compliance. According to Paxton, the 130 cities identified thus far failed to provide the audits or meet the transparency benchmarks required for the new fiscal year.
The first round of letters includes Alpine, Balch Springs, Big Spring, Bishop, Cameron, Cuero, Eagle Lake, Fritch, Hamilton, Hearne, Horizon City, Kemah, Kenedy, Livingston, Manvel, Mexia, Port Lavaca, Rusk, Seabrook, Snyder, Texas City, Victoria, Weslaco, Wimberley and Yoakum.
Violation letters and penalties
The cities received formal violation determination letters telling them they are now subject to the enforcement provisions and penalties in the new law. Paxton also said, "My office will continue to aggressively enforce Texas law to protect taxpayers across the state," as the office moved into its next round of review.
The Attorney General’s Office said the investigation is still ongoing and more cities could be added to the non-compliant list as the review continues. For city leaders, the immediate issue is whether they can satisfy the state audit and transparency requirements before their tax-setting plans move forward under SB 1851.
