Ken Paxton blocks property tax hikes for 132 Texas cities

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WASHINGTON, DC - ARPIL 26: Texas Attorney General Ken Paxton speaks to reporters after the Supreme Court oral arguments in the Biden v. Texas case at the Supreme Court on Capitol Hill on Tuesday, April 26, 2022 in Washington, DC. (Photo by Sarah Silb

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Attorney General Ken Paxton issued a formal warning to more than 130 Texas cities on Thursday, prohibiting them from raising property taxes after an investigation found the municipalities failed to meet state transparency and financial audit requirements.

Tax hike ban

The enforcement action follows the passage of SB 1851 during the 2025 legislative session. The law bars cities from adopting property tax rates above the "no-new-revenue" level, the rate required to collect the same amount of taxes as the previous year, if they remain out of compliance with state-mandated financial reporting.

The Attorney General’s Office launched a sweeping probe last month, demanding documentation from over 1,000 municipalities to verify compliance. According to Paxton, the 130 cities identified thus far failed to provide the necessary audits or meet statutory transparency benchmarks for the new fiscal year.

What they're saying:

"I will not allow cities to unlawfully raise taxes on hardworking Texans. That is why I took aggressive action against over 130 Texas cities to hold them accountable and ensure they comply with state law," said Attorney General Paxton. "Cities cannot fail to abide by state audit requirements without consequences. My office will continue to aggressively enforce Texas law to protect taxpayers across the state," Paxton said in a statement. 

The cities received formal violation determination letters notifying them that they are now subject to the enforcement provisions and penalties established under the new law.

What's next:

The Office of the Attorney General indicated that the investigation is ongoing and more cities could be added to the non-compliant list as the review of municipal records continues.

The cities identified in the initial enforcement action include:

Alpine, Aspermont, Baird, Balch Springs, Balmorhea, Bedias, Berryville, Big Spring, Bishop, Blooming Grove, Blue Mound, Briarcliff, Brookside Village, Buffalo Gap, Calvert, Cameron, Campbell, Centerville, Chico, Chireno, Clarksville, Clear Lake Shores, Combine, Corrigan, Crane, Cross Timber, Crowell, Crystal City, Cuero, Dalhart, Danbury, De Leon, Eagle Lake, Elkhart, Eureka, Eustace, Fairfield, Farwell, Flatonia, Franklin, Fritch, Fulton, Gordon, Grandfalls, Gregory, Groesbeck, Groom, Hale Center, Hamilton, Hearne, Hempstead, Higgins, Hillcrest Village, Horizon City, Howardwick, Howe, Huntington, Industry, Ingleside On the Bay, Jewett, Jonestown, Keene, Kemah, Kenedy, Kerens, Kermit, Lamesa, Livingston, Lott, Lumberton, Manvel, Marquez, McCamey, Megargel, Menard, Mertzon, Mexia, Miami, Midway, Miles, Mount Enterprise, Natalia, New Home, New Waverly, Newcastle, Oyster Creek, Paducah, Panorama Village, Pelican Bay, Pleak Village, Plum Grove, Port Lavaca, Quanah, Red Lick, Redwater, Rockdale, Rocksprings, Roma, Rusk, San Elizario, San Felipe, San Perlita, Seabrook, Shepherd, Smiley, Snyder, Somerville, Southmayd, Spring Branch, Spur, Sterling City, Stinnett, Sunray, Surfside Beach, Taft, Tehuacana, Texas City, Texline, Three Rivers, Tiki Island, Tom Bean, Tool, Turkey, Valley Mills, Valley View, Victoria, Weslaco, Weston Lakes, Wharton, Wickett, Wimberley, Wolfe City, Woodloch, Yantis, and Yoakum.