Ken Paxton warns Texas cities over property tax limits

Texas Attorney General Ken Paxton has notified 110 cities that they are prohibited from raising property taxes above the no-new-revenue rate. This action follows an investigation into compliance with Senate Bill 1851, a 2025 law requiring municipalities to meet specific financial statement audit and transparency standards.

Under SB 1851, cities must conduct annual audits and file financial statements within 180 days of the end of their fiscal year. Paxton’s office previously identified over 130 cities failing to meet these statutory requirements. The current round of letters targets municipalities across East, South, and West Texas as the investigation continues.

Separately, Paxton is facing political challenges in his U.S. Senate candidacy. Republican strategist Susan Del Percio criticized Paxton as “fundamentally flawed,” noting that his history of scandals has impacted his standing with voters. Recent polling shows Democratic state Representative James Talarico leading Paxton with 48% to 46.8%.