Texas Attorney General Ken Paxton is reviewing almost 1,000 localities for compliance with Senate Bill 1851's audit and financial transparency standards. Attorney General Ken Paxton has ordered several communities to stop illegal tax increases and may investigate others.
.jpg)
Texas Attorney General Ken Paxton is reviewing more than 1,000 towns, including Houston, Dallas, and San Antonio, to determine whether they comply with state audit and transparency standards for financial reporting. Paxton's office said the project will examine more cities.
Senate Bill 1851, a new law, prohibits towns from raising taxes beyond the no-new-revenue rate if they fail to meet long-standing state audit and financial disclosure criteria. Paxton has ordered La Marque, Odessa, Tom Bean, and Whitesboro to stop illegal tax hikes.
The cases triggered a further investigation. The attorney general's office found that many Texas communities “routinely fail” to comply with mandatory audit requirements, prompting Paxton to take a proactive statewide approach rather than waiting for complaints or irregularities.
Paxton said local authorities cannot flout the law, cover up their finances, and punish Texans with endless tax increases. He said the study will guarantee “the law is universally followed, taxpayers are respected, and local government is accountable to all Texans.”
This project encompasses many of the state's largest and fastest-growing towns. Houston, Galveston, San Antonio, Dallas, Fort Worth, Lubbock, Wichita Falls, McAllen, Beaumont, Amarillo, El Paso, Corpus Christi, Laredo, Texarkana, Brownsville, Waco, and Tyler are included in Paxton's office's list of municipalities, and auditors may add more as they review filings and seek documentation.
Paxton's office warned that governments that violate audit regulations or reject financial disclosure demands could face “significant legal risk.” The advisory warns that penalties may rise if towns fail to respond or fix state-identified issues.
A public complaint portal operated by the Attorney General allows Texans to report violations of SB 1851. Residents can report municipal politicians who raise taxes without complying with financial reporting requirements through the program.
The attorney general is reviewing municipal autonomy, state monitoring, and rising local government spending in Texas. State officials did not set a deadline for the audit sweep but said enforcement will continue if cases arise.
.jpg)
.jpg)
