Texas SB1851 imposes a penalty on municipalities that fail to comply with audit requirements by restricting their ability to set ad valorem tax rates.

Texas SB1851 amends the Local Government Code to add a new section that imposes a penalty for noncompliance with certain audit requirements by a municipality. Specifically, if a municipality does not have its records and accounts audited and an annual financial statement prepared based on the audit, or does not file the financial statement and the auditor's opinion on the statement with the municipal clerk before 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 SB1851 imposes a penalty on municipalities that fail to comply with audit requirements by restricting their ability to set ad valorem tax rates.

Texas SB1851 amends the Local Government Code to add a new section that imposes a penalty for noncompliance with certain audit requirements by a municipality. Specifically, if a municipality does not have its records and accounts audited and an annual financial statement prepared based on the audit, or does not file the financial statement and the auditor's opinion on the statement with the municipal clerk before 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.