Attorney General Singles Out Rusk

Attorney General Ken Paxton sent letters to over 130 different Texas cities to notify them that they are prohibited from raising ad valorem taxes above the no-new-revenue tax rate. This action follows Attorney General Paxton’s investigation of over 1,000 Texas cities to ensure none are unlawfully raising taxes.
During the 2025 legislative session, SB 1851 was passed and then enacted into law. This law bars cities from raising property taxes above the no-new-revenue rate if they do not meet Texas’s financial statement audit and transparency requirements. Last month, Attorney General Paxton demanded documents from over 1,000 municipalities as part of an ongoing investigation to determine statewide compliance with SB 1851. That led to the identification of over 130 cities that failed to comply with the statutory requirements for the new fiscal year. 
Now, Attorney General Paxton has notified those cities that they are subject to the enforcement provisions and penalties established under SB 1851 and may not adopt property tax increases above the no-new-revenue rate. These letters are addressed to an initial list of non-compliant cities, and the investigation remains ongoing. The OAG will continue to take additional action and make further determinations as more cities are found to be out-of-compliance with audit requirements.  
Rusk is one of the East Texas cities that were singled out