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Ken Paxton Orders Cities to Halt Potentially Illegal Property Tax Hikes

Texas Attorney General Ken Paxton has directed four towns, La Marque, Odessa, Tom Bean, and Whitesboro, to halt the implementation of property tax increases that may violate state law.

In a letter, Paxton warned that the cities risked unlawfully burdening taxpayers by moving forward with steep hikes without complying with state auditing requirements.

"I have grave concerns that municipalities across Texas have blatantly violated the law in an attempt to crank up people's property taxes," Paxton expressed. "My message to these cities is this: don't mess with Texas taxpayers. Local governments must abide by the law, and I will take every step to defend the people of Texas and their hard-earned dollars."

The issue stems from Senate Bill 1851, which was enacted during the most recent legislative session. Under the law, cities that fail to meet state auditing requirements, such as filing annual financial reports on time, are restricted from adopting a tax rate that maintains the same revenue as the prior year.

Despite this restriction, several municipalities have allegedly attempted to raise property taxes by as much as 51%, well above the state's no-new-revenue limit.

Paxton's office emphasized that raising taxes without first meeting legal financial reporting obligations undermines accountability and transparency.

The Attorney General has instructed the cities to pause their planned increases immediately while compliance issues are reviewed.

The action highlights growing scrutiny of local government's fiscal practices and highlights ongoing tension between state oversight and municipal autonomy in Texas.

Raeylee Barefield

Raeylee Barefield is a student at the University of Texas at Austin pursuing a degree in Government. She enjoys reading, writing, and cooking in her spare time.

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