Dallas is one of nearly 1,000 cities Texas Attorney General Ken Paxton announced Tuesday he is investigating.
Paxton has launched a statewide investigation to ensure compliance with a new state law governing municipal financial transparency and tax increases.
The initiative centers on Senate Bill 1851, which took effect this year. The law prohibits cities from raising property taxes above the no-new-revenue rate, the rate that would bring in the same amount of revenue as the previous year, if they have not met state-required financial audit and transparency standards.
According to the Attorney General’s Office, the review was prompted by earlier investigations into La Marque, Odessa, Tom Bean and Whitesboro. In those cases, Paxton sent letters instructing officials to halt what he described as unlawful tax increases.
Political Points
Paxton’s office said those inquiries revealed that many cities statewide are not consistently complying with long-standing financial reporting requirements.
As part of the new initiative, Paxton is requesting financial documents and audit information from cities across Texas, including major urban centers such as Houston, San Antonio, Fort Worth, El Paso and Dallas. Cities that receive an information-request email are being instructed to respond promptly or risk legal consequences.
For Dallas, the investigation means the city could be asked to provide documentation showing it meets state audit transparency rules. Dallas publishes its annual comprehensive financial report on its website.
The city of Dallas did not immediately respond to a request for comment.
Paxton said the goal is statewide consistency in following SB 1851 and preventing what he described as “never-ending tax increases.”