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City staff brief Elgin council on SB 1851 implications for tax-rate approval
Summary
Staff summarized guidance from the Texas Municipal League on SB 1851, which TML interprets to require that an audit covering the tax year be completed before a city may adopt a higher tax rate for that tax year; no legal advice was given and city attorney review was recommended.
City staff briefed the council on Senate Bill 1851 and how the law may affect the city’s ability to adopt tax-rate increases if a required audit for the applicable tax year is not complete.
Staff described SB 1851 as defining the tax year on the tax-code side to begin on or after Sept. 1, 2025, and said the Texas Municipal League (TML) has advised many cities that a completed, approved audit is necessary before approving a tax increase for the applicable tax year. The staff presenter noted the new law’s interpretation remains a legal question and recommended council seek advice from the city attorney on how it applies to Elgin’s fiscal-year timing and the city’s recent audit schedule.
There was no council action; staff said this was an informational update and that any legal opinion should come from the city attorney.
