Northeast Texas cities under investigation by Texas Attorney General's Office

More than 20 area municipalities were listed among the thousands of cities under investigation by the Texas Attorney General’s Office in regard to Senate Bill 1851.

SB 1851 was passed and requires cities to complete and post their annual financial audits by a specified deadline. If cities do not comply, they are prohibited from increasing property tax revenue from the prior year’s level, also referred to as a no-new-revenue tax rate.

The “no-new-revenue” tax rate is a rate that would generate the same amount of revenue from the previous year. This tax limitation would remain in effect until the city falls into compliance with SB1851.