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Attorney General Ken Paxton recently fired a shot across the bow of local government in Texas. His office notified more than 110 cities that they are barred from raising property taxes above the “no‑new‑revenue” rate because they failed to meet the audit and filing rules in SB 1851. That is not a suggestion. It is an enforcement move meant to protect taxpayers and force city leaders to follow the law.
Paxton’s crackdown on property taxes and Texas cities
This week the Attorney General’s office sent letters to 110+ municipalities saying they may not adopt ad valorem tax increases above the no‑new‑revenue rate. The action follows an audit sweep that began with a demand for financial documents from more than 1,000 cities. Paxton’s message is simple: complete your audits and file your financial statements, or lose the ability to raise property taxes beyond the rate that keeps revenue flat. For taxpayers worried about surprise property tax hikes, that is welcome news.
What SB 1851 requires and why it matters
SB 1851 ties a basic transparency rule to a real consequence. Cities must finish an annual financial audit and file a related statement within 180 days after their fiscal year ends. If they do not, they cannot adopt a tax rate higher than the no‑new‑revenue (NNR) rate — the math that keeps revenue from growing simply from new dollars or higher rates. The law was designed to force local leaders to be accountable and to stop last‑minute tax grabs without proper oversight.
Cities push back — but excuses don’t cut it
Some city officials say small staffs and limited budgets make the deadline hard to meet. That may be true in a few places. But “our auditor is a one‑man show” is not an answer when taxpayers face higher bills. If a city can’t get its books in order, it shouldn’t be allowed to ask residents for more money. Austin didn’t invent the rule overnight; the Legislature passed it to fix a gap. Local leaders who complain now are looking for sympathy, not solutions.
What comes next for taxpayers and local governments
Expect pushback and maybe some court fights. Municipal groups have raised questions about how the penalty works across fiscal years and repeat failures. Those are legitimate legal issues that belong in court or the Legislature. But the big picture is clear: enforcement of SB 1851 means more transparency and fewer surprise tax hikes. Attorney General Ken Paxton is playing the role voters asked for — holding cities accountable and protecting homeowners. If city officials want to restore the right to raise taxes, they know the path: follow the law and file your audits on time.
