AUSTIN, Texas - Texas Attorney General Ken Paxton sent letters to over 130 cities, including multiple cities in Southeast Texas, notifying them that they are prohibited from raising ad valorem taxes above the no-new-revenue tax rate.
This comes after Paxton's investigation of over 1,000 Texas cities to ensure none are unlawfully raising taxes, in violation of SB 1851, a law passed during the 2025 legislative session that 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.
The 130 cities named failed to comply with the statutory requirements for the new fiscal year, according to Paxton's office.