Texas HB4097 imposes a penalty on municipalities that fail to comply with audit requirements by limiting their ad valorem tax rate.

Texas HB4097 amends Chapter 103 of the Local Government Code to add a new section establishing a penalty for noncompliance with audit requirements by a municipality. Specifically, if a municipality does not complete an annual audit and file the financial statement and auditor's opinion with the municipal clerk by the 180th day after the last day of the municipality's fiscal year, it may not adopt an ad valorem tax rate that exceeds the municipality's no-new-revenue tax rate.

Texas HB4097 imposes a penalty on municipalities that fail to comply with audit requirements by limiting their ad valorem tax rate.

Texas HB4097 amends Chapter 103 of the Local Government Code to add a new section establishing a penalty for noncompliance with audit requirements by a municipality. Specifically, if a municipality does not complete an annual audit and file the financial statement and auditor's opinion with the municipal clerk by the 180th day after the last day of the municipality's fiscal year, it may not adopt an ad valorem tax rate that exceeds the municipality's no-new-revenue tax rate.