Today, August 17th, Texas Attorney General Ken Paxton’s office sent letters1 to more than 110 additional cities prohibiting them from raising ad valorem property taxes above the no-new-revenue (NNR) tax rate. The NNR rate is the property tax rate a local taxing entity would need to adopt in order to collect the same amount of property tax revenue as the previous tax year on the same properties, taking into account any rise in appraised values.
According to the AG’s office, these cities failed to meet basic financial audit and transparency requirements under state law.
This latest action builds on earlier enforcement. In April 2026, Paxton requested documents2 from over 1,000 municipalities as part of a statewide review. In May, he notified more than 130 cities3 that they could not adopt tax increases above the no-new-revenue rate. Now a new group of cities has been added to the list of those barred from hiking taxes.
The legal foundation is SB 1851,4 enacted into law during the 89th legislative session in 2025.5 The law requires municipalities to complete annual financial audits and file the resulting statements within 180 days after the end of their fiscal year. Cities that fail to comply may not adopt a tax rate higher than the NNR rate. This penalty remains in place until the city brings its audits current. The statute gives the Attorney General clear authority to determine noncompliance.
Paxton commented in the press release announcing the new cities, stating: “I am continuing to fight to stop cities from unlawfully raising taxes on hardworking Texans. My office has been investigating cities across Texas. Now, over 110 new cities have been notified that they must not raise property taxes in violation of state law. I will continue to make sure that taxpayers are protected from unlawful tax increases.”
The cities receiving the latest letters include smaller communities across the state such as Aransas Pass, Brazoria, Greenville, Hereford, Pasadena, Port Isabel, Throckmorton, Winnsboro, and many others.
Property taxes remain one of the heaviest burdens on Texas families and small businesses. When cities raise rates without completing the required audits, residents lose the ability to see how their money is being spent or whether local officials are managing it responsibly. SB 1851 ties the power to increase taxes directly to compliance with these transparency rules.
Paxton’s office has maintained a complaint form6 so Texans can report suspected violations, so taxpayers who believe their city may be in violation should consider filing a report. Local governments that treat audit requirements as optional should not be allowed to simply raise taxes and move on. You can find the complaint form HERE.
For families already stretched by other housing costs, inflation, and other daily expenses, every tax increase continues the squeeze. Requiring cities to show their books before they take more money from taxpayers is basic accountability, and the Attorney General’s Office is using the tools the Legislature provided to enforce that standard.
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- https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sends-letters-prohibiting-more-110-cities-illegally-raising-taxes-texans ↩︎
- https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-demands-documents-over-1000-municipalities-part-new-effort-stop-cities ↩︎
- https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sends-letters-prohibiting-over-130-texas-cities-illegally-raising-taxes ↩︎
- https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1851 ↩︎
- https://index.texastaxpayers.com/votes/2025-senate-vote-jp1360 ↩︎
- https://www.texasattorneygeneral.gov/sb1851-complaint-form ↩︎
