🏛️ Introduction
When Senate Bill 1851 (SB 1851) took effect on September 1, 2025, it marked one of the most important property tax reforms in recent Texas history. Understanding SB 1851 Texas property tax compliance is crucial for cities or counties as the law is clear: cities or counties that fail to follow Truth-in-Taxation (TNT) procedures cannot adopt new tax rate increases until they fix compliance issues. SB 1851 Texas property tax compliance ensures transparency and accountability.
For homeowners, this new oversight means greater transparency, accountability, and protection from unauthorized rate hikes but it also requires paying attention to how local governments report their tax data. Keeping up with SB 1851 Texas property tax compliance requirements is vital.
What SB 1851 Does
SB 1851, passed by the 89th Texas Legislature, gives the Texas Attorney General (AG) and Comptroller’s office new authority to:
- Audit local governments that adopt illegal or non-compliant tax rates.
- Suspend new rate approvals for entities that fail to follow TNT notice or hearing rules.
- Enforce penalties or repayment obligations if improper rates are collected.
In short, SB 1851 ensures that taxing entities cannot raise property taxes unless they are fully transparent and compliant with state law, a key aspect of SB 1851 Texas property tax compliance.
Key Effective Date: September 1, 2025
From September 1 forward, every Texas city, county, and special district must meet strict documentation and reporting standards before setting a new tax rate. Fulfilling these requirements is essential for SB 1851 Texas property tax compliance.
This includes:
- Publishing Truth-in-Taxation notices correctly and on time.
- Holding public hearings before adopting higher rates.
- Submitting accurate rate and revenue data to the Comptroller.
If a city fails in any of these areas, SB 1851 immediately freezes their ability to increase rates until an audit verifies compliance.
How Auditing Mandates Work
The AG’s office, in partnership with the Comptroller, can now:
- Investigate taxpayer complaints about improper rate adoption.
- Audit rate files and budget documents for TNT violations.
- Issue compliance orders requiring corrections before future increases.
Cities that ignore these orders could face financial penalties, state oversight, or rate rollbacks protecting homeowners from overpayment due to non-transparent practices.
How Homeowners Can Monitor City Reports
Texas homeowners can play a role in keeping their local governments accountable under SB 1851. Here’s how:
- Check your city or county’s tax rate website.
Each entity must post TNT notices and rate adoption summaries publicly. - Follow Attorney General press releases.
The AG often announces investigations or orders involving non-compliant cities. - Review your appraisal district’s Truth-in-Taxation page.
Many districts now link to SB 1851 compliance updates. - Report suspicious rate changes.
If your city raises taxes without public hearings or notice, file a complaint with the Texas Comptroller’s Property Tax Assistance Division.
Conclusion
SB 1851 represents a turning point for Texas property tax accountability. By banning rate increases for non-compliant cities, it sends a clear message: transparency is no longer optional.
Homeowners who stay informed and monitor local tax reports can help ensure their community’s taxes are fair, legal, and properly reported. SB 1851 Texas property tax compliance is a tool for ensuring fairness.
