AUSTIN, Texas — Texas Attorney General Ken Paxton announced an investigation into the organizations backing Proposition Q, a measure that would raise property taxes within Austin city limits if approved by voters.

In a press release sent to media outlets Friday, Paxton said his office is examining the activities of the Love Austin Political Action Committee and Foundation Communities, a nonprofit organization that he said contributed $25,000 to the PAC. Paxton described the donation as “a sham, and it could be illegal.”

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However, Austin City Councilmember Chito Vela, who represents District 4, disputed that characterization.

“The attorney general is either misunderstanding the law or deliberately trying to intimidate voters and nonprofit organizations in this election,” Vela said. “It is old and settled law that nonprofit organizations can get involved and advocate for bond elections, for issues.”

Vela has personally contributed $1,000 to the Love Austin PAC in support of Proposition Q. Mayor Kirk Watson and Mayor Pro Tem Vanessa Fuentes have also made donations to the campaign.

If approved, Proposition Q could increase the average homeowner’s property taxes by an estimated 20%. State law limits most municipal tax increases to 3.5% without voter approval through an election.

A spokesperson for Love Austin said the group intends to cooperate with the attorney general’s inquiry, stating, “We’ll respond to the attorney general’s inquiry in a timely manner.”

Vela suggested the investigation’s timing—coming midway through early voting—may have little impact on voters’ decisions.

“It is very eleventh hour, honestly,” he said. “We’re halfway through early voting at this point, and I don’t think this is going to change many opinions or many votes. If anything, Ken Paxton trying to put his thumb on the scale will probably rally Austin voters to vote for Prop Q because Austin voters are generally not big fans of the Texas attorney general.”

Early voting continues through October 31. Election Day is Tuesday, November 4.