Property Taxes

2023 Proposed Property Tax Rate

The City Council voted to consider a tax rate for 2023 of  $0.350000 per $100 on August 15, 2023.  A public hearing on the proposed tax rate is scheduled for September 12, 2023 at 5:30 p.m. at City Hall.  

The Notice of Tax Increase reflects the relevant information on the tax rate proposal.

Tax Rate Calculations

Type Rate per $100 Explanation
This Year's Tax Rate $0.350000 2023 Proposed Tax Rate 
Preceding Year's Tax Rate $0.346500 2022 Adopted Tax Rate
No New Revenue Tax Rate $0.340667 Tax rate that generates the same revenue as the 2022 tax rate
Voter Approval Tax Rate $0.364512 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 calculation and submission of the No New Revenue and Voter Approval Tax Rate calculations as required under the Texas Tax Code 26.04.

The Notice of Tax Rates and the TNT calculation worksheets can be found at the links below:

Tax Comparison Table for SB2

Description 2022 2023  Change
Average Home Value
$ 421,735
$ 463,722
$ 41,987
Homestead Exemption
- 54,826
- 69,558
- 14,733
Average Taxable Value
$ 366,909
$ 394,164
$ 27,255
or 7.43%
Rate per $100
$0.346500
$0.350000
$ 0.0035
or 1.01%
Tax on Average Homestead
$ 1,271.34
$ 1,379.57
$ 108.23
Total Tax Levy on All Properties*
$ 67,084,480
$ 69,247,274
$ 2,162,794 
or 3.22%
* 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: FY2022 Budget | FY2023 Budget | FY2024 Budget

Audited Financial Report: FY2022 Annual Comprehensive Financial Report

Tax Rate and Budget Information

 
2021
2022
2023
M&O Tax Rate
$0.208851
$0.200061
$0.203962
Debt Service Tax Rate
$0.137649
$0.146439
$0.146038
Total Tax Rate Per $100
$0.346500
$0.346500
$0.350000
       
Budgeted Tax Revenue
FY2022
FY2023
FY2024
M&O
$34,044,408
$ 35,499,306
$ 39,707,331
Debt Service
$22,439,907
$25,984,489
$28,430,684
Total Budgeted Property Tax
$ 56,482,312
$61,486,489
$68,138,015
Total Operating & Capital Budget -
$389,118,066
$353,049,715
Budget Change from FY23 to FY24 -
$-36,068,348
-9.3%

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 proposed budget and CIP is dependent on the final certified taxable value.