Texas Attorney General Ken Paxton on Wednesday announced a statewide investigation into the finances and property tax practices of nearly 1,000 cities to determine compliance with a new state law that ties property tax rate increases to transparency requirements.
The investigation targets cities across Texas and focuses on whether local governments followed legally required procedures before adopting property tax rates, including issuing public notices, providing disclosures, and holding public hearings.
Paxton’s office requested financial records and tax-related documents from the cities under review to examine how and when tax rates were adopted and to assess compliance with the law.
The Attorney General’s Office stated that the inquiry serves as a compliance review and does not allege specific wrongdoing. Officials said the findings could affect whether certain cities may implement or maintain recent property tax rate increases.
State officials said they will analyze submitted records, compare them with statutory requirements, and determine whether enforcement actions or legal remedies are necessary under the transparency law.
City officials said they are reviewing the document requests and preparing the required materials for submission to the Attorney General’s Office.