A new state law in Texas requires cities to be up-to-date on their financial audits before raising property taxes. This law is causing issues for some small towns that cannot afford to conduct audits. In one such town, Howe, the city manager has been working to catch up on overdue audits.

Despite progress, the town received a letter from the Texas Attorney General that effectively froze its property tax rate due to the outstanding audits. Further details on the impact of this law on small towns like Howe are available through KXXV.