Paxton Orders Four Texas Cities to Pause Property Tax Hikes During Audit-Compliance Investigation
A new May law bars tax hikes by cities that miss audit deadlines, giving the attorney general power to freeze tax rates for a year.
Overview
- Attorney General Ken Paxton sent letters to Odessa, La Marque, Tom Bean and Whitesboro directing them to suspend recently approved property tax increases while his office investigates complaints of late or missing audits.
- City officials say they believe they are compliant or argue the statute should not apply retroactively, with several submitting documentation in response to the inquiries.
- La Marque and Whitesboro acknowledge late audit filings, with Whitesboro saying its tax increase funds firefighters, a new water tower, an emergency services computer system and road repairs.
- Odessa has not filed its 2023 audit and reported that its recent rate change adds about $39 a month to the average homeowner’s bill.
- Whitesboro approved a rate increase from 38 to 58 cents per $100 of taxable value, and La Marque approved a two-cent hike, while the new law authorizes the attorney general to hold a city to the no-new-revenue rate if it is out of compliance.