Texas AG Orders Four Cities to Halt Tax Hikes

Texas Attorney General Ken Paxton sent letters to La Marque, Odessa, Tom Bean and Whitesboro ordering them to halt recently adopted property tax increases while his office investigates complaints that the cities missed annual audit deadlines and may have violated Senate Bill 1851, which took effect Sept. 1 and limits jurisdictions with late or incomplete audits to raising only enough taxes to maintain prior-year revenue. Paxton has requested audit and tax-rate documentation, warned he can freeze a city's tax rate for a year, and said he will 'take every step to defend' taxpayers. Several cities say they face dire financial shortfalls and overspending that prompted council votes to raise rates to cover bills or bond obligations. Local officials contest the allegations: Whitesboro says its audit was completed June 30, La Marque says it is cooperating and providing records, and Tom Bean is accused of being years out of compliance. State leaders say enforcing the audit deadline is part of broader efforts to protect recent state-funded property tax relief from being eroded by local increases.