Introduction
Texas Attorney General Ken Paxton is cracking down on cities that fail to follow Truth-in-Taxation (TNT) and Senate Bill 1851 (SB 1851) rules. These violations can lead to illegal property tax rate increases, and many homeowners don’t realize they have protection under the new law. Ensuring Texas property tax audit compliance is crucial for cities to avoid such violations.
Paxton’s recent investigations and halt orders aim to stop non-compliant cities from overcharging taxpayers and to restore transparency in how property tax rates are set across Texas, emphasizing the need for audit compliance.
Why the Investigations Matter
When a city or county fails to follow TNT requirements such as holding public hearings or posting tax rate notices, it violates Texas property tax law.
Under SB 1851, passed by the 89th Legislature, the Attorney General now has the authority to:
- Investigate city and county tax rate adoptions.
- Audit local governments for missing or inaccurate filings.
- Issue stop-orders preventing further rate increases until the city corrects the problem.
These steps help protect homeowners from paying more than legally required and encourage local governments to maintain property tax audit compliance.
What SB 1851 Requires
Senate Bill 1851, effective September 1, 2025, sets strict rules for all taxing entities in Texas. Cities must:
- Publish Truth-in-Taxation notices clearly showing rate changes.
- Hold public hearings before adopting higher rates.
- Submit accurate data to the Texas Comptroller for public access.
Failure to meet these standards can trigger an audit or legal action from the Attorney General’s office aimed at ensuring Texas property tax audit compliance.
Examples of AG Halt Orders
Since the law took effect, Paxton’s office has issued halt orders to several cities and towns under review for not following TNT procedures. These actions serve as warnings to any city that tries to raise taxes without meeting all legal steps, which are part of property tax audit compliance, could be forced to freeze or roll back rates.
This enforcement protects homeowners from sudden or illegal increases on their property tax bills.
How Homeowners Can Protect Themselves
You can play a direct role in keeping your local government compliant. Here’s how:
- Check your city’s tax notices.
Make sure your city posts its proposed rate and hearing dates publicly. - Follow Comptroller and AG updates.
The Texas Comptroller’s website lists local TNT compliance reports, essential for audit compliance. - File a complaint if something looks wrong.
If your city raises taxes without proper hearings, report it to the Attorney General’s Property Tax Division. - Keep records.
Save copies of tax bills, notices, and any correspondence in case an audit is launched in your area.
Conclusion
The Attorney General’s new audits under SB 1851 give Texas homeowners stronger protection than ever before. By enforcing compliance, Paxton’s office is ensuring cities follow the law before increasing rates keeping your property taxes fair, transparent, and legal.
Stay informed, stay involved, and don’t hesitate to report suspicious rate changes to maintain Texas property tax audit compliance.
