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Texas Attorney General Tells 4 Cities to Drop Tax Hikes Amid Investigations Into Incomplete Audits

Texas Attorney General Ken Paxton ordered four cities to suspend property tax hikes amid audits showing late filings or incomplete financial reports under a new state law.

  • On October 2, 2025 Texas Attorney General Ken Paxton ordered La Marque, Odessa, Tom Bean and Whitesboro to pause newly adopted property tax increases while his office investigates.
  • This year SB 1851, signed by Gov. Greg Abbott, took effect on September 1, 2025, prohibiting cities that miss audit deadlines from raising taxes above the no-new-revenue rate.
  • City records show compliance gaps: La Marque city officials filed audits six months late, Whitesboro city council filed three months late, and Tom Bean, Texas, posted audits years old.
  • Paxton's letters demand officials halt tax hikes and submit audits and notices; the Office of the Attorney General may freeze rates for a year and will enforce compliance, while cities like La Marque cooperate and Odessa disputes retroactive application.
  • Facing tight budgets, La Marque, Texas reports a $3 million shortfall and $1.2 million in reserves, while Whitesboro, Texas will raise homeowner bills by nearly $500.
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KXXV broke the news in on Thursday, October 2, 2025.
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