Property Taxes
2021 Tax Rate
City Council adopted a tax rate of $0.346500 per $100 on September 21, 2021. This tax rate is a one cent increase from the 2020 tax rate to fund the next phase of voter approved GO bond projects from the 2019 election. This rate exceeds the No New Revenue Tax Rate and is below the Voter Approval Tax Rate as calculated by the Fort Bend County Tax Assessor-Collector.
Tax bills will be prepared and mailed by the Fort Bend County Tax Office.
Tax Rate Calculations
| Type | Rate per $100 | Explanation |
|---|---|---|
| This Year's Tax Rate | $0.34650 | 2021 Adopted Tax Rate |
| Preceding Year's Tax Rate | $0.33650 | 2020 Adopted Tax Rate |
| No New Revenue Tax Rate | $0.339025 | Tax rate that generates the same revenue as the 2020 tax rate |
| Voter Approval Tax Rate | $0.355394 | Tax rate that cannot be exceeded without voter approval |
Truth in Taxation Calculations
The City of Sugar Land contracts with the Fort Bend County Tax Assessor-Collector for billing and collection of property taxes, including submission of No New Revenue and Voter Approval Tax Rate calculations under the Texas Tax Code, as required.
Below are the notice of Tax Rates and the TNT calculation worksheets submitted to the City of Sugar Land by the Fort Bend Tax Assessor-Collector.
Tax Comparison Table for SB2
| Description | 2020 |
2021 |
Change |
|---|---|---|---|
| Average Home Value | $378,915 |
$384,471 |
$5,556 |
| Homestead Exemption (12%) | -45,470 |
-46,137 |
-667 |
| Average Taxable Value | 333,445 |
338,334 |
4,889 |
| Tax Rate per $100 | $ 0.33650 |
$0.34650 |
$0.01000 |
| Tax on Average Homestead | $1,122.04 |
$1,172.22 |
$50.29 |
| Total Tax Levy on All Properties* | $55,166,600 |
$56,806,024 |
$1,639,424 |
| * Tax Levy calculated using Texas Property Tax Code definition from No New Revenue Tax Rate Worksheets |
Tax Rate and Budget Information
The following information is provided in compliance with section 26.18 of the Tax Code. For convenience, where information resides elsewhere on this site, links are provided to the information.
Official contact information for the governing body: Mayor and City Council
Budget Information: FY2020 Budget | FY2021 Budget | FY2022 Budget
Audited Financial Report: FY2020 Audited Financials
2019 |
2020 |
2021 |
|
|---|---|---|---|
| M&O Tax Rate | $0.19705 |
$0.20305 |
$0.208851 |
| Debt Service Tax Rate | 0.13495 |
$0.13345 |
$0.137649 |
| Total Tax Rate per $100 | $0.33200 |
$0.33650 |
$0.346500 |
| Budgeted Tax Revenue | FY2020 |
FY2021 |
FY2022 |
| M&O | $30,861,472 |
$ 32,031,391 |
$ 34,044,408 |
| Debt Service | 21,135,527 |
21,051,904 |
22,437,904 |
| Total Budgeted Property Tax | $ 51,996,999 |
$ 53,083,295 |
$56,482,312 |
| Total Operating & Capital Budget | - |
$ 253,990,457 |
$ 297,957,914 |
| Budget Change FY21 to FY22 | - |
$ 43,967,457 |
17.3% |
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.
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 FY22 budget and CIP is dependent on the final certified taxable value.