Texas Politicians Required to Disclose Blind Trust Properties and Rental Income
In a recent development, Texas Attorney General Ken Paxton may find himself in a tight spot as state ethics regulators have passed new transparency rules for elected officials. The Texas Ethics Commission, during its Tuesday meeting, implemented a rule that mandates officials to divulge properties held in a blind trust if they possess “actual knowledge” of these properties. Furthermore, if politicians own rental properties, they are now required to disclose the address and the renter’s name. This information must be included in their annual personal financial statements, which are submitted to the commission each spring.
The Unveiling of Hidden Properties
This decision by the commission comes on the heels of an eye-opening report by The Texas Newsroom, which revealed that Paxton failed to disclose several properties owned by either him or his blind trust in his personal financial statements for 2023 and 2024. Notably, on his 2023 form, Paxton expressed skepticism about the rules regarding rental income and property ownership, deeming them as lacking detail and abstract. Similarly, Paxton’s wife, Angela, who is a state senator and a beneficiary of the blind trust, echoed his sentiments on her 2023 annual form.
According to public records scrutinized by The Texas Newsroom, Paxton or his blind trust have ownership stakes in a total of 10 properties spread across five states. While one property was disclosed in his last ethics form filed in July, it was uncovered that Paxton owns three homes in his name, including a luxurious cabin in Oklahoma and a townhome in Florida. On the other hand, the trust holds ownership of seven additional properties, such as two homes in Florida initially purchased by Paxton and subsequently transferred to the trust, as well as land parcels in Hawaii and Utah.
The Intricacies of Property Ownership
Interestingly, county records indicate that Angela Paxton has been responsible for paying taxes on the Utah land for the past three years. Moreover, despite the trust being the designated owner, the mailing address listed on appraisal records for the land in Hawaii and three Texas homes belongs to Paxton’s residence in McKinney.
Six of the aforementioned properties, all located out of state, were acquired in the last three years, with The Wall Street Journal shedding light on this buying spree back in June 2023. As the spotlight now shines on Paxton, the big question remains whether he will disclose additional details about these properties and his rental income in his upcoming statement, especially in light of the new ethics rules.
The Implications of Non-Disclosure
Violating these rules could lead to severe repercussions for Paxton, including fines or even criminal charges. However, the commission spokesman refrained from addressing whether these new rules were specifically enacted in response to Paxton’s confusion or the investigative reporting by The Texas Newsroom. Following the Tuesday meeting, the commissioners remained tight-lipped about any potential investigation into Paxton, emphasizing the need to maintain confidentiality during such proceedings.
Chairman Randall H. Erben acknowledged the awareness of the issue but emphasized the necessity of keeping enforcement actions under wraps. Despite expressing a desire to share more information, Erben highlighted the regulatory constraints that mandate discretion in such matters. He underscored the commitment to pursuing enforcement actions diligently and impartially until the process reaches its conclusion.
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