Wood County residents have recently engaged in lively conversations both online and at all the local coffee shops and breakfast places as citizens discuss Texas Attorney General Ken Paxton’s announcement that he had launched a sweeping investigation into more than 1,000 cities across the state to ensure compliance with financial transparency laws tied to property tax increases.

The effort centers on Senate Bill 1851, passed during the most recent session of the Texas Legislature, which requires municipalities to complete and publicly post annual financial audits within a set deadline. Under the law, cities that fail to meet those requirements are prohibited from increasing property tax revenue beyond the previous year’s level.

Paxton’s office said the review is not aimed at cities simply for raising taxes, but rather to verify that municipalities are meeting audit and transparency standards before doing so. “I will not allow any Texas city to unlawfully increase taxes,” Paxton said, adding that his office is demanding documentation to ensure compliance. He also emphasized the need for cities to prioritize transparency and minimize the tax burden on residents.

State law under Section 103.003 of the Local Government Code requires cities to file annual financial statements, including the auditor’s opinion, within 180 days after the end of their fiscal year.

Across Wood County, cities have reported varying levels of compliance and communication with the Attorney General’s office. Mineola and Quitman both have current audits posted online for the fiscal year ending Sept. 30, 2025. Mineola City Administrator Cindy Karch said the city has not received any request for documents from the Attorney General’s office and is in full compliance with state requirements. She added that the city has not increased its tax rate.

Quitman and Alba confirmed they were contacted by Paxton’s office and have complied with requests to upload financial documentation. Alba City Secretary Lindy McCarty said the city’s latest audit was presented to the council in March 2026 and that requested materials were submitted promptly after receiving notice. While Alba’s audit is not posted online, it is available for public viewing at city hall during normal operating hours.

In Winnsboro, City Secretary Makenzie Lyons said the city has not yet completed its most recent audit but is working to address a backlog caused by past staffing turnover and disorganized financial records. Lyons said the city anticipated the issue and adopted the “no-new-revenue tax rate” to remain compliant with SB 1851 while audits are finalized. She noted that current financial records are now maintained in an audit-ready condition and that the city is making progress with the help of outside consultants.

Lyons also emphasized that the statewide review is administrative and does not affect day-to-day operations or public services. Under state law, the primary consequence for cities not meeting audit requirements is a temporary limitation on adopting a higher property tax rate.

In Hawkins, city leaders approved the 2023-2024 fiscal year audit in January 2026, which is the most recent financial report available online. City officials did not respond to requests for comment.

Officials countywide agreed that inclusion in the review does not indicate wrongdoing, but rather reflects a broad effort to ensure transparency and accountability in municipal finances across Texas, and they have either already met or are working hard to meet all of the requirements.