Attorney General Ken Paxton sent letters to over 130 different Texas cities to notify them that they are prohibited from raising ad valorem taxes above the no-new-revenue tax rate. This action follows Attorney General Paxton’s investigation of over 1,000 Texas cities to ensure none are unlawfully raising taxes.
During the 2025 legislative session, SB 1851 was passed and then enacted into law. This law bars cities from raising property taxes above the no-new-revenue rate if they do not meet Texas’s financial statement audit and transparency requirements. Last month, Attorney General Paxton demanded documents from over 1,000 municipalities as part of an ongoing investigation to determine statewide compliance with SB 1851. That led to the identification of over 130 cities that failed to comply with the statutory requirements for the new fiscal year.
Now, Attorney General Paxton has notified those cities that they are subject to the enforcement provisions and penalties established under SB 1851 and may not adopt property tax increases above the no-new-revenue rate. These letters are addressed to an initial list of non-compliant cities, and the investigation remains ongoing. The OAG will continue to take additional action and make further determinations as more cities are found to be out-of-compliance with audit requirements.
“I will not allow cities to unlawfully raise taxes on hardworking Texans. That is why I took aggressive action against over 130 Texas cities to hold them accountable and ensure they comply with state law,” said Attorney General Paxton. “Cities cannot fail to abide by state audit requirements without consequences. My office will continue to aggressively enforce Texas law to protect taxpayers across the state.”
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.
Article source and photo credit: Texas Attorney General
