The cities of Odem and Mathis are two of 110 Texas municipalities recently notified by Texas Attorney General Ken Paxton that they are prohibited from raising property taxes above the no-new-revenue tax rate for the upcoming fiscal year.
According to an Aug. 17 news release from the Office of the Attorney General, the enforcement action stems from an ongoing investigation of more than 1,000 Texas cities to ensure local governments comply with state property tax laws.
Under Senate Bill 1851, passed during the 2025 legislative session, cities are legally barred from raising ad valorem tax revenues above the no-new-revenue rate if they fail to meet state financial statement audit and transparency requirements. According to Paxton’s office, investigators demanded financial documents from more than 1,000 cities statewide to monitor compliance with SB 1851. An initial phase of the investigation earlier this year identified more than 130 cities that allegedly failed to meet statutory reporting requirements. The Aug. 17 announcement added 110 cities to that alleged noncompliance list, including Odem and Mathis…