Attorney General Paxton Issues Tax Freeze Notices to Over One Hundred Texas Cities
Ken Paxton sent letters to 110 Texas municipalities warning them they cannot increase property taxes beyond the state-mandated limit.
Attorney General Ken Paxton announced that letters have been sent to 110 Texas cities informing them that any property-tax increase above the no-new-revenue rate is prohibited under Senate Bill 1851. The 2025 statute adds audit and financial-statement requirements to the Local Government Code, demanding annual audits and filing of the auditor’s opinion within 180 days after the fiscal year closes. Earlier in the year, Paxton requested records from more than 1,000 municipalities and identified over 130 that did not satisfy the new compliance rules.
Those cities received enforcement warnings in May, and the latest batch expands the crackdown to additional jurisdictions across East, South and West Texas. Paxton emphasized his commitment to preventing unlawful tax hikes and safeguarding taxpayers. The investigation remains ongoing as the state monitors municipal adherence to the law.
Why it matters
It limits local tax increases, affecting homeowners and municipal budgets across Texas.
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