TX SB1851

Allows any person to submit a complaint to the Texas Attorney General alleging a municipality has violated annual audit or financial statement filing requirements under Sections 103.001 or 103.003 of the Local Government Code

Prohibits a municipality from adopting an ad valorem tax rate exceeding its no-new-revenue tax rate if the Attorney General determines the municipality failed to complete its required annual audit and financial statement, or failed to file documents with the municipal clerk within 180 days after the fiscal year ends

Tax rate restriction remains in effect for the tax year beginning after the Attorney General's determination and continues for subsequent tax years until the municipality completes and files the required audit documents

Applies only to tax rate adoptions for tax years beginning on or after September 1, 2025

Passed the Senate 31-0 on April 16, 2025, and the House 89-31 on May 10, 2025