EL PASO, Texas (KFOX14\/CBS4) \u2014 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 transparent about it. <\/p>\n
According to Texas Attorney General Ken Paxton, El Paso raised taxes and failed to comply with SB 1851’s requirements to submit the required financial documents and audit information to ensure the move is legal. <\/p>\n
“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\u2019m launching this review to ensure that the law is universally followed, taxpayers are respected, and local government is accountable to all Texans.”<\/p>\n
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\u2019s auditing requirements may only raise taxes enough to maintain the previous year\u2019s amount of revenue, meaning, keeping cities from raising taxes above the “no-new-revenue rate.” <\/p>\n
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.<\/p>\n
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. <\/p>\n
RELATED: El Paso homeowners could face higher tax bills despite lower tax rate<\/a><\/p>\n El Paso isn’t alone in Paxton’s probe.<\/p>\n 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.<\/p>\n 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.”<\/p>\n 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 online HERE<\/a>.<\/p>\n RECOMMENDED: El Paso businesses hopeful as Texas law exempts $125K inventory from taxes<\/a><\/p>\n