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

SB 1851 requires Texas municipalities to complete annual audits and file financial statements by the 180th day after their fiscal year ends. If a municipality misses this deadline, it cannot adopt a property tax rate exceeding its "no-new-revenue tax rate" for the affected tax year and any subsequent year until the audit is completed and filed. The law applies only to tax years beginning on or after September 1, 2025, and became effective immediately after Governor's signature on May 24, 2025. This bill directly affects all Texas municipalities subject to audit requirements under Local Government Code Chapter 103.