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Paxton Launches Statewide Review of Nearly 1,000 Texas Cities Under New Audit Law

The initiative enforces SB 1851 by linking tax increases to compliance with state financial audits.

Overview

  • Paxton’s office sent information requests as part of a proactive review that now includes major metros such as Houston, Dallas, San Antonio, Fort Worth and El Paso.
  • Cities that fail audit and transparency requirements or ignore the requests were warned they face “significant legal risk,” according to the attorney general’s office.
  • The office published a list of cities under scrutiny and said the number is expected to grow as the review continues.
  • Texans can submit concerns through a new complaint form if they believe local officials are violating SB 1851.
  • Earlier enforcement letters ordered La Marque, Odessa, Tom Bean and Whitesboro to halt tax increases, and some cities now say they are compliant and have provided documents.