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Texas AG launches financial transparency probes into hundreds of cities

Texas state Attorney General Ken Paxton, center, makes a statement at his office in Austin, Texas, Friday, May 26, 2023, ahead of his impeachment in the Texas House of Representatives.
Eric Gay
/
AP
Texas state Attorney General Ken Paxton, center, makes a statement at his office in Austin, Texas, Friday, May 26, 2023, ahead of his impeachment in the Texas House of Representatives.

Texas Attorney General Ken Paxton pointed to bill passed earlier this year focused on unlawful tax increases.

State Attorney General Ken Paxton is investigating Dallas, Fort Worth and hundreds of other cities to prevent what he calls potential unlawful tax increases, his office announced Tuesday.

Paxton said he's requesting financial documents and other information from those cities, and that the number of cities under investigation "will continue to grow."

"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. While many cities have already complied with these requirements, I'm launching this review to ensure that the law is universally followed, taxpayers are respected, and local government is accountable to all Texans."

Other cities include San Antonio, Houston, El Paso, Wichita Falls, Waco, Tyler and Galveston.

It's not clear what evidence — if any — Paxton has to suggest wrongdoing by the cities.

The probe comes in the wake of Senate Bill 1851's passage earlier this year. The law prohibits a city from raising taxes if it's found to have violated financial statement audit requirements.

Penelope Rivera is KERA's breaking news reporter. Got a tip? Email Penelope Rivera at privera@kera.org.

Copyright 2025 KERA News

Penelope Rivera