AUSTIN — Texas Attorney General Ken Paxton on Wednesday announced a statewide investigation into the finances and property tax practices of nearly 1,000 cities to ensure compliance with a new state law linking tax rate increases to transparency requirements.
The law bars cities from raising property tax rates unless they follow prescribed procedures, including public notices, disclosure, and hearings prior to adopting new rates.
Paxton’s office requested financial and tax-related information from cities to review their processes and verify adherence to these standards.
No specific wrongdoing has been alleged. The Attorney General’s Office framed the investigation as a compliance review rather than a response to violations, but findings could affect whether cities are allowed to implement recent tax rate increases.
The inquiry will examine who the office is investigating, what actions cities took, when they adopted tax rates, where transparency requirements may have been missed, and how enforcement could impact local taxing authority.
City officials are reviewing the requests and preparing documents for submission. State officials will analyze records, compare them to statutory requirements, and determine whether any legal remedies are necessary to enforce the transparency law.
