Bill > HB159

This bill introduces a new requirement for certain political subdivisions (local government entities) to conduct efficiency audits if they adopt ad valorem (property) tax rates that exceed the "no-new-revenue" tax rate (a baseline tax rate that would generate the same total revenue as the previous year) for five consecutive tax years, starting from the 2022 tax year. The bill defines an efficiency audit as an investigation into the political subdivision's fiscal management, resource utilization, and operational efficiency. The political subdivision must pay for the audit, select an independent auditor who will complete the audit within three months, and then hold a public meeting to discuss the audit results. Within 30 days of this meeting, the audit results must be posted on the entity's website. The auditor will have access to all necessary documents, records, and personnel to conduct the audit. An exception is made for political subdivisions located in areas declared disaster areas, which can seek voter approval to exceed tax rates without conducting an audit during the two years following the disaster declaration. The bill applies to all taxing units except school districts and will take effect 91 days after the end of the legislative session.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=891&Bill=HB159