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1,000 Cities in Texas, Including Houston and Galveston, Under Paxton Investigation

The review targets compliance with Senate Bill 1851 that limits property tax increases unless cities meet audit and transparency standards, with 1,000 cities contacted so far.

  • On Tuesday, Texas Attorney General Ken Paxton launched a probe of nearly 1,000 cities, including Houston, Dallas and Galveston, to check compliance with SB 1851.
  • Paxton's office said earlier investigations found cities routinely fail long-standing financial reporting requirements, prompting a statewide review after probes into La Marque, Odessa, Tom Bean and Whitesboro.
  • Requesting financial documents, Paxton's office has ordered La Marque, Odessa, Tom Bean and Whitesboro to halt what his office described as unlawful tax increases, and Texans can now file complaints about SB 1851 violations through a form by the Office of the Attorney General .
  • Cities found out of compliance face legal risk, and under SB 1851, noncompliant municipalities could be barred from raising property taxes above the no-new-revenue rate, Paxton said.
  • Several city officials said they comply and will cooperate, with Brian Chasnoff saying San Antonio follows transparency rules; observers questioned if the AG can prove wrongdoing given the probe's scale.
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Dallas—The Texas Attorney General, Ken Paxton, has launched an investigation into nearly 1,000 cities in Texas – including El Paso – to make sure they are following a new state law aimed at preventing localities from unduly increasing property taxes, his office announced on Tuesday. Paxton’s office said El Paso is among the cities included in its review. But border city officials have not heard from the Attorney General’s Office, spokesman Laura…

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WFAA 8abc broke the news in Dallas, United States on Tuesday, December 9, 2025.
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