DALLAS — Texas Attorney General Ken Paxton has launched a probe into almost 1,000 Texas cities to make sure they’re following a new state law aimed at preventing localities from unduly raising property taxes, his office said Tuesday.
The initiative is designed to enforce a new state law that says cities can’t raise more in property taxes than they did the previous year if they don’t follow financial transparency requirements set out in state law. The new law is part of a broader push by Texas Republicans to bring the state’s high property taxes to heel.
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Paxton has requested financial documents and other information from a majority of the state’s 1,200 cities, his office said. Paxton did not allege any wrongdoing by the cities in the Tuesday news release.
Houston, Dallas, Fort Worth, Corpus Christi and Waco were among the cities named in the announcement.
A Waco spokesperson said the Central Texas city received a letter from Paxton’s office on Nov. 21.
“The City of Waco submitted all the requested documentation on November 23, demonstrating full compliance with applicable state laws,” the spokesperson said. “We take these matters seriously and remain committed to strong fiscal stewardship, transparent reporting, and meeting all state-mandated requirements. If the Attorney General’s office requests any additional information, we will continue to cooperate fully.”
It fits a pattern of Paxton making splashy announcements with far-reaching investigations and his power to push a conservative agenda.
“This is the conservative Legislature using the conservative attorney general to impose conservative governance on Texas cities, who may or may not be conservative,” said Randall Erben, a professor at the University of Texas School of Law.
Erben cast doubt that the attorney general’s office, which has outsourced work in the past, could prove wrongdoing given the shear scale of the probe.
“To say it’s staff-intensive would be an understatement,” Erben said.
Paxton’s office did not respond to additional questions from The Tribune about the scope of the investigation.
A San Antonio spokesperson said the city “complies with state laws governing financial reporting and transparency” and will provide Paxton’s office the information they seek.
“This review does not change the City’s ongoing budget planning work,” spokesperson Brian Chasnoff said. “The City follows a public process each year, and we remain committed to transparency and responsible stewardship of taxpayer dollars.”
Paxton’s office said El Paso is among the cities included in their review. But officials in the border city haven’t heard from the attorney general’s office, spokesperson Laura Cruz-Acosta said in an email.
“The City of El Paso has always complied with all applicable laws, rules, and regulations related to its budgeting, tax rate adoption, and financial reporting,” said Cruz-Acosta, who touted awards the city has received for financial reporting. “We take our responsibility to uphold transparency and fiscal accountability seriously and consistently meet all deadlines for audited financial statements and required disclosures.”
State law requires cities to conduct an annual financial audit and release an annual financial statement based on that audit. Cities have to publish that statement 180 days after the end of the city’s fiscal year. Senate Bill 1851, which took effect Sept. 1, aims to bar cities from raising more in property taxes than they did the previous year if they fail to meet those requirements. The new law allows residents to complain to the attorney general’s office if they suspect that localities haven’t kept
Earlier this year, Paxton sent letters to Odessa, La Marque, Tom Bean and Whitesboro demanding that they drop property tax increases on the basis that they weren’t in compliance with those requirements. Officials with Odessa, La Marque and Whitesboro told the Tribune they believed they were following the law.
Paxton’s office launched the initiative because “it became apparent that cities across the state routinely fail to comply with” the state’s financial reporting requirements, his office said in a news release.
“Local officials will not be allowed to ignore the law, cover up their finances, and burden Texans with never-ending tax increases,” Paxton said in a statement. “Our cities and municipalities must prioritize transparency and minimizing the tax burden of every citizen across the state.”
— Waco Bridge Editor-in-Chief J.B. Smith contributed