Texas Attorney General Ken Paxton notified more than 110 cities that they cannot raise property taxes without meeting state financial reporting requirements, expanding an enforcement push against local governments.
The action follows an investigation of over 1,000 Texas municipalities and earlier notices sent to 130 cities in May. The restriction stems from Senate Bill 1851, which was signed into law during the 2025 legislative session and bars cities from increasing property taxes above the no-new-revenue rate unless they comply with financial statement audit and transparency requirements.
In April, Paxton's office demanded documents from over 1,000 municipalities to gauge statewide compliance with the law. That review identified 130 cities initially found to be out of compliance, and now an additional 110-plus cities have joined that list, according to the attorney general's office.
Paxton said the enforcement action protects taxpayers. "I will continue to make sure that taxpayers are protected from unlawful tax increases," he said in a statement.
The office named over 110 cities in its enforcement letters, including Adrian, Annona, Aransas Pass, Avery, and dozens of others across Texas. The investigation remains ongoing, and the attorney general said it will take additional action as more cities are found to be noncompliant.