Property Taxes
2020 Tax Rate
The adopted tax rate to fund the fiscal year 2021 budget is $0.33650- which is a $0.0045 increase to fund the first phase of projects from the 2019 voter approved GO bond packages.
The City Council adopted the tax rate of $0.33650 on September 15th after publishing notice and holding a public hearing on September 8, 2020. This tax rate will be reflected on tax bills mailed in the fall of 2020.
| Type | Rate per $100 | Explanation |
|---|---|---|
| This Year's Tax Rate | $0.336500 |
2020 Adopted Tax Rate |
| Preceding Year's Tax Rate | $0.332000 |
2019 Adopted Tax Rate |
| No New Revenue Tax Rate | $0.324073 |
Tax rate that generates the same revenue as 2019 |
| Voter Approval Tax Rate | $0.350806 |
Tax rate that cannot be exceeded without voter approval |
Truth in Taxation Calculations
Calculation of the No-New-Revenue and Voter Approval Tax Rates for 2020 have been completed by the Fort Bend County Tax Assessor/Collector and submitted to the City of Sugar Land on August 6, 2020 as required by the tax code.
2020 Tax Rate Calculation Worksheet
These calculations do not reflect the tax rate adopted by the City Council. The City Council adopted tax rate of $0.33650 for the 2020 tax year on September 15, 2020 after receiving input from taxpayers in a public hearing on September 8, 2020.
Tax Comparison Table for SB2
2019 |
2020 |
Change | |
|---|---|---|---|
| Average Home Value | $374,856 |
$378,923 |
increase of 1.08% |
| Homestead Exemption (12%) | -44,983 |
- 45,471 |
increase of 1.08% |
| Average Taxable Value | $329,874 |
$ 333,453 |
Increase of 1.08% |
| Tax Rate per $100 | $0.33200 |
$0.33650 |
Increase of $0.00045 or 1.36% |
| Tax on Average Homestead | $1,095 |
$1,122 |
Increase of $27 or 2.45% |
| Total Tax Levy on All Properties | $53,334,214 |
$54,111,570 |
increase of $777,356 or 1.45% |
Tax Rate and Budget Information for FY2021
The following information is provided as required by Sec 26.18 of the Tax Code. For convenience, the required information or (if the information resides elsewhere on this site) links to all the required information can be found below.
Official contact information for members of the governing body: Mayor and City Council
Budget Information: FY2019 Budget : FY2020 Budget : FY2021 Budget
Audited Financial Report: FY2019 Comprehensive Annual Financial Report
| Information for Tax Year 2020 | Tax Year 2018 |
Tax Year 2019 |
Tax Year 2020 |
|---|---|---|---|
| M&O Tax Rate | $0.18131 |
$0.19705 |
$0.20305 |
| Debt Service Tax Rate | $0.13631 |
$0.13495 |
$0.13345 |
| Total Tax Rate per $100 | $0.31762 |
$0.33200 |
$0.33650 |
| Budgeted Tax Revenue | FY2019 |
FY2020 |
FY2021 |
| M&O | $28,314,000 |
$30,861,472 |
$32,526,642 |
| Debt Service | $21,280,000 |
$21,135,527 |
$21,356,544 |
| Total Budgeted Property Tax | $49,594,000 |
$51,996,999 |
$53,883,186 |
| Total Operating & Capital Budget | - |
$ 272,452,807 |
$ 254,260,457 |
| Budget Change - FY20 to FY21 | - |
-6.7% |
-18,192,350 |
Truth in Taxation Process
Once the City receives the certified value reports from the CAD, the process of setting a tax rate for the year begins. The City has 60 days after receiving the certified tax roll or until September 30th (whichever is later) to adopt a tax rate. However, there are strict time constraints and processes that must occur in order to adopt the tax rate.
The No New Revenue Tax Rate is the tax rate that generates no additional revenue for the City. New values to the tax roll are excluded from this calculation.
The Voter Approval Rate is the tax rate that generates the revenue needed to meet the City’s debt service obligations, plus 3.5% increase in revenue for operations and maintenance. Adoption of a rate over this amount requires approval by voters in November.
For 2020, due to the COVID-19 emergency declaration, City Council enacted a provision allowed in the Tax Code to set the Voter Approval Rate at an 8% increase for operations and maintenance. This provision was enacted because it allows the City Council more time to make a decision on the tax rate, as they don’t have to approve the rate in August to meet the November election requirements.
Tax Rate Setting Process
The property tax rate is adopted in September after the budget is approved by City Council. Prior to considering the tax rate, a public hearing is held to receive feedback from the public.
Property values in Fort Bend County are set by the Fort Bend Central Appraisal District (CAD). The CAD is charged with establishing values for all properties in the County as of January 1 of each year and certifying the taxable values to each taxing entity. Under the Tax Code, the value must be certified by July 25 of each year. However, 95% of property in the county must be approved before the Chief Appraiser can certify the values.
Since the City Charter requires the City Manager to file a proposed budget no later than July 30 of each year, the budget is based on assumptions of property tax revenues. The tax rate needed to generate the revenue in the FY21 budget and CIP is dependent on the final certified taxable value.
Low Property Tax Rate
Sugar Land provides a 12% residential homestead exemption for the 2020 tax year- increased in 2019 based on a vote of City Council. The exemption allows 12% of the appraised value to be deducted to get the taxable value.
This exemption applies for all homeowners, regardless of age, who live in the home as their primary residence. This exemption essentially serves as a four-cent discount on the City's tax bill for homeowners.
To apply for this exemption, please visit the Fort Bend Central Appraisal District’s website. You do not have to reapply for this exemption once it is granted.
Residential Homestead Exemption
Historical Tax Rate
Sugar Land has lowered its property tax rate significantly since 1993 and maintained the second lowest tax rate in the state among cities our size- with the City’s tax bill making up only 15% of the average residential tax bill.
Compared to similarly sized cities across the state, including those in our region, we are proud to have one of the lowest tax rates in the state while still providing the high level of services our citizens expect. In fact, the average household cost of services has remained low, even as the services and amenities provided by our lean but championship workforce daily have increased.