HB 4097

bill freezing tax rates for cities that skip audits

Companion SB 1851 became law

Verdict: No flags

No flagsInitial review

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

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

Caption from analyzed text · version I.

Summary

Miss the audit, stuck at the no-new-revenue rate.

The bill lets anyone complain to the attorney general that a city skipped its required annual audit or failed to file its audited financial statement within 180 days after its fiscal year ends. If the attorney general finds the city out of compliance, the city cannot raise its property tax rate above the no-new-revenue rate. That limit lasts for the next tax year and every later year until the city completes the audit or files the statement.

Receipt

The receipt

89R-HB4097 · 2025-03-07

SOLD BY

Rep. Cody HarrisRHouse 8

+ 1 coauthor

ITEM

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

WHAT IT DOES

Miss the audit, stuck at the no-new-revenue rate.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 4, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Mar 7, 2025Filed
Mar 27, 2025Read first time
Mar 27, 2025Referred to Intergovernmental Affairs
Apr 8, 2025Scheduled for public hearing on . . .
Apr 8, 2025Considered in public hearing
Apr 8, 2025Testimony taken/registration(s) recorded in committee
Apr 8, 2025Left pending in committee
Apr 28, 2025Considered in formal meeting
Apr 28, 2025Reported favorably w/o amendment(s)
May 5, 2025Comte report filed with Committee Coordinator
May 5, 2025Committee report distributed
May 5, 2025Committee report sent to Calendars
May 6, 2025Considered in Calendars
May 8, 2025Placed on General State Calendar
May 9, 2025Companion considered in lieu of SB 1851
May 9, 2025Laid on the table subject to call

FILED UNDER

No verified beat found.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Cody Harris

Donors

Texans for Lawsuit Reform PAC$131K Texas Sands PAC$59K Texas REALTORS Political Action Committee$53K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 31, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$131,199.90

Texans for Lawsuit Reform PAC

$131,199.90

Cash: $65,000.00
Paid by others: $66,199.90
Total: $131,199.90

grassroots $56,899.90polling $9,300.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 27, 2025 to Sep 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101008254, 101028696, 101039343, 101067574.

Texas Sands PAC$58,800.00

Texas Sands PAC

$58,800.00

Cash: $42,500.00
Paid by others: $16,300.00
Total: $58,800.00

polling $16,300.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Nov 22, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985564, 101028696, 101039343, 101071425.

Texas REALTORS Political Action Committee$52,590.39

Texas REALTORS Political Action Committee

$52,590.39

Cash: $45,000.00
Paid by others: $7,590.39
Total: $52,590.39

digital $5,420.63text $1,960.28Other filed descriptions $209.48

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 11, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985564, 101008254, 101028696, 101035469, 101039343, 101057705, 101067574.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Texans for Lawsuit Reform PAC

$131,199.90

Cash: $65,000.00
Paid by others: $66,199.90
Total: $131,199.90

grassroots $56,899.90polling $9,300.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 27, 2025 to Sep 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101008254, 101028696, 101039343, 101067574.

Texas Sands PAC

$58,800.00

Cash: $42,500.00
Paid by others: $16,300.00
Total: $58,800.00

polling $16,300.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Nov 22, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985564, 101028696, 101039343, 101071425.

Texas REALTORS Political Action Committee

$52,590.39

Cash: $45,000.00
Paid by others: $7,590.39
Total: $52,590.39

digital $5,420.63text $1,960.28Other filed descriptions $209.48

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 11, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985564, 101008254, 101028696, 101035469, 101039343, 101057705, 101067574.

Votes

No floor vote loaded for this bill.

Witnesses2

For: 0
Against: 2
On: 0

Names

Against

City of Austin1 registration
Self1 registration

Sources

2 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 4, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 7, 2025

05/09/2025 H Laid on the table subject to call

Texas Legislature Online · Introduced · House Committee Report

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors

Carrie IsaacRHouse 73

House committee · Intergovernmental Affairs · Committee vote 9 aye, 1 nay, 1 absent · Out of committee

Companion

SB 1851 by Nichols (identical)

Subjects

City Government--Finance

City Government--General

Taxation--Property-Miscellaneous

AUDITS & AUDITORS

ATTORNEY GENERAL

Text

The text as introduced · 310 words

89R8353 DNC-D

By: Harris
H.B. No. 4097

A BILL TO BE ENTITLED

AN ACT

relating to the penalty for noncompliance with certain audit

requirements by a municipality.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 103, Local Government Code, is amended

by adding Section 103.005 to read as follows:

Sec. 103.005. ANNUAL AUDIT AND FILING OF FINANCIAL

STATEMENT; PENALTY FOR NONCOMPLIANCE. (a) In this section:

(1) "No-new-revenue tax rate" means the

no-new-revenue tax rate calculated under Chapter 26, Tax Code.

(2) "Tax year" has the meaning assigned by Section

1.04, Tax Code.

(b) A person may submit a complaint to the attorney general

of a suspected violation of Section 103.001 or 103.003.

(c) Notwithstanding any other law, if the attorney general

determines that a municipality has not had its records and accounts

audited and an annual financial statement prepared based on the

audit as required by Section 103.001 or has not filed the financial

statement and the auditor's opinion on the statement in the office

of the municipal secretary or clerk before the 180th day after the

last day of the municipality's fiscal year as required by Section

103.003, the municipality may not adopt an ad valorem tax rate that

exceeds the municipality's no-new-revenue tax rate:

(1) for the tax year that begins on or after the date

of the attorney general's determination; or

(2) for a subsequent tax year that begins before the

date the municipality has had an annual audit completed and

financial statement prepared or filed the financial statement and

auditor's opinion on the financial statement with the municipal

clerk, as applicable.

SECTION 2. This Act applies only to the adoption of an ad

valorem tax rate for a tax year that begins on or after the

effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.