Story perspectives

Paxton Sends Violation Notices to 130 Texas Cities

5/15/2026

Summary

Story summary

Attorney General Ken Paxton sent violation letters to 130 Texas municipalities in May 2026, launching enforcement of the 2025 Senate Bill 1851 tax limits.
He barred cities from raising taxes above the no-new-revenue rate after they failed SB 1851 audit and transparency rules, following a review of 1,000 municipalities.
Paxton said move protects Texans, noting Wimberley and Jonestown complied with audits while Houston, Dallas, Fort Worth and Corpus Christi were not cited.

History

Historical Context

Texas’s reliance on constitutional tax caps dates back to the early 2000s, when Proposition 4 (2004) limited property-tax revenue growth to inflation and population growth. That precedent underpins today’s legal challenges to municipal financing, as state officials across the state continue to enforce limits on local revenue-raising measures for cities.

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Story summary

Attorney General Ken Paxton sent violation letters to 130 Texas municipalities in May 2026, launching enforcement of the 2025 Senate Bill 1851 tax limits.
He barred cities from raising taxes above the no-new-revenue rate after they failed SB 1851 audit and transparency rules, following a review of 1,000 municipalities.
Paxton said move protects Texans, noting Wimberley and Jonestown complied with audits while Houston, Dallas, Fort Worth and Corpus Christi were not cited.

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