Relating to the penalty for noncompliance with certain audit requirements by a municipality.

HB 4097 requires Texas municipalities to complete annual financial audits and file the results by the 180th day after their fiscal year ends. If a municipality misses this deadline, it cannot adopt a property tax rate higher than its "no-new-revenue tax rate" for the current and subsequent tax years until it complies. This applies to all cities and towns required to conduct audits under state law. The bill imposes a direct financial penalty by restricting tax increases for noncompliant municipalities, effective September 1, 2025. It does not create new audit requirements but adds enforcement for existing obligations under Local Government Code Section 103.001.