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.

Notice About 2020 Tax Rates

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

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 CAFR

 
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

Homestead Exemption

Historical Tax Rate

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.

Peer City Tax Rates

2019 Tax Rates