Texas Attorney General Ken Paxton has notified more than 110 additional cities that they are barred from raising property taxes above the no-new-revenue rate, his office announced in an Aug. 17 news release.
The letters extend an enforcement effort built on Senate Bill 1851, which the Texas Legislature passed during the 2025 session. According to the release, the law bars cities from raising property taxes above the no-new-revenue rate if they do not meet the state’s financial statement audit and transparency requirements. Cities that fall short are subject to the enforcement provisions and penalties the statute established.
The attorney general’s office said the newest round of letters follows an investigation of more than 1,000 Texas cities. In April, Paxton demanded documents from over 1,000 municipalities to determine statewide compliance with SB 1851, the release said. That review identified more than 130 cities that failed to meet the statutory requirements for the new fiscal year, and in May the office notified those cities that they may not adopt property tax increases above the no-new-revenue rate.
“I am continuing to fight to stop cities from unlawfully raising taxes on hardworking Texans,” said Attorney General Ken Paxton. “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 named in the release span the state and vary widely in size, ranging from Pasadena, Mission, Greenville, Robinson and Hereford to small communities such as Dish, Toyah, Cranfills Gap and Round Top. Others receiving violation determination letters include Aransas Pass, Cotulla, Port Isabel, Presidio, Santa Fe, Sunset Valley, Tulia and Winnsboro.
The office said the investigation remains ongoing and that it will take additional action and make further determinations as more cities are found to be out of compliance with audit requirements. For the roughly 240 municipalities notified so far, the practical effect is that budgets for the coming fiscal year must be built without a property tax rate increase beyond the no-new-revenue level.