The Texas Attorney General is investigating the City of El Paso after he claims the City raised taxes above the 'no-new-revenue' rate and has not been...
Attorney General Ken Paxton has initiated a statewide investigation into nearly 1,000 Texas cities, including El Paso, to ensure compliance with municipal budget transparency and prevent unlawful tax increases.
This move follows the enactment of SB 1851, a state law prohibiting cities from raising taxes above the no-new-revenue rate if they fail to meet financial statement audit and transparency requirements. Paxton has already sent letters to cities like La Marque, Odessa, Tom Bean, and Whitesboro to halt illegal tax hikes. Local officials will not be allowed to ignore the law, cover up their finances, and burden Texans with never-ending tax increases," Paxton said. "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. This move follows the enactment of SB 1851, a state law that went into effect in September, stipulating that cities that do not meet the State’s auditing requirements may only raise taxes enough to maintain the previous year’s amount of revenue, meaning, keeping cities from raising taxes above the "no-new-revenue rate." If they raise taxes, then they have to follow Texas's financial statement audit and transparency requirements to ensure the tax rate follows the law. In August, the City of El Paso approved the lowest property tax rate in a decade; however, due to an increase in property values despite the low rate, homeowners will still see an increase in their tax bill.The AG is looking into almost 1,000 cities in Texas, such as Houston, Galveston, San Antonio, Dallas, Fort Worth, Lubbock, Wichita Falls, McAllen, Beaumont, Amarillo, Corpus Christin, Laredo, Texarkana, Brownsville, Waco and Tyler. Paxton has already sent letters to cities such as La Marque, Odessa, Tom Bean, and Whitesboro, demanding they halt what he says are "illegal tax hikes." SB 1851 also gave Paxton authority to act on citizen complaints if they believe their local officials are violating SB 1851's audit requirements, which people can submit onlineThe City of El Paso has always complied with all applicable laws, rules, and regulations related to its budgeting, tax rate adoption, and 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. Each year, the City submits its audited financial statements to all pertinent agencies and posts them to the Electronic Municipal Market Access system, the City’s website, and the Federal Audit Clearinghouse. Our most current Annual Comprehensive Financial Report , along with reports for the prior 20 years, is available on the City’s website. We share the State of Texas commitment to transparency in government finances and appreciate efforts to further strengthen public understanding of how tax dollars are managed. Transparency and accountability have long guided the City of El Paso, and have also been recognized by the Government Finance Officers Association, which has awarded the City the Distinguished Budget Presentation Award for its budget as well as the Certificate of Excellence in Financial Reporting for the ACFR for 30 consecutive years, in addition to recognition for the Popular Annual Financial Report. Regarding Senate Bill 1851, which took effect on September 1, 2025, the City has not raised property taxes in violation of this law. SB 1851 was not in effect at the time City Council adopted the fiscal year 2026 tax rate, and the City remains in full compliance with the statute and all related requirements. The City has not received a request from the Office of the Attorney General related to this initiative. As with any request from state authorities, the City will review and respond in accordance with state law and established public information procedures. Because our financial practices already align with state transparency and reporting standards, we do not anticipate any operational or budget impacts as a result of this review.The families of James Yost, 76, and Kenneth Clanton, 33, are grieving after the two were found dead in a Georgetown home that was intentionally set on fire overThe mother of an 8-year-old Round Rock girl reported missing last week has been arrested after investigators determined she and another woman conspired to hideA report released from the Austin City Auditor’s Office ha revelead that Mark Ybarra, a former Facility Service Specialist at Austin Energy, fraudulently reportOn the next clear night, Liberty Hill residents have a new reason to step outside and look up. Earlier this year, the city was officially designated an InternaNew questions are emerging about the 48-hour detention and deportation of a 19-year-old student from Austin, who was trying to surprise her family for Thanksgiv
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