House Bill No. 4097 introduces a new section to the Local Government Code, specifically Section 103.005, which establishes penalties for municipalities that fail to comply with certain audit requirements. The bill defines key terms such as "no-new-revenue tax rate" and "tax year," and allows individuals to submit complaints to the attorney general regarding suspected violations of existing audit requirements. If the attorney general finds that a municipality has not conducted the required audits or filed the necessary financial statements within the specified timeframe, the municipality will be restricted from adopting an ad valorem tax rate that exceeds its no-new-revenue tax rate for the current and subsequent tax years until compliance is achieved.

The provisions of this bill are set to take effect on September 1, 2025, and will apply to the adoption of ad valorem tax rates for tax years beginning on or after that date. This legislation aims to ensure greater accountability and transparency in municipal financial practices by imposing consequences for noncompliance with audit requirements.

Statutes affected:
Introduced: ()