FY23 - Property Taxes

2022 Adopted Tax Rate

On September 20, 2022 City Council approved Ordinance No. 2278 adopting a tax rate of $0.346500 for the 2022 tax year.  The tax rate shifted $0.008790 from maintenance & operations to debt service to support implementation of the 2019 GO Bond projects planned for FY23 and allowed acceleration of the final drainage and streets projects from the bond election.

Tax Rate Calculations

Type Rate per $100 Explanation
This Year's Tax Rate $0.346500 2022 Adopted Tax Rate
Preceding Year's Tax Rate $0.346500 2021 Adopted Tax Rate
No New Revenue Tax Rate $ 0.318287 Tax rate that generates the same revenue as the 2021 tax rate
Voter Approval Tax Rate $ 0.359778 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 below as submitted to the City by the Tax Office.

Tax Comparison Table for SB2

Description 2021 2022 Change
Average Home Value
$ 384,351
$ 421,980
$ 37,629
Homestead Exemption
- 46,122
- 54,857
-8,735
Average Taxable Value
$ 338,229
$ 367,123
$ 28,894
Rate per $100
$0.346500
$0.346500
$ - 0 -
Tax on Average Homestead
$ 1,172
$ 1,272
$ 100
Total Tax Levy on All Properties*
$ 57,687,163
$ 63,384,101
$ 5,701,894
* 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: FY2021 Budget | FY2022 Budget | FY2023 Budget

Audited Financial Report: FY2021 Annual Comprehensive Financial Report

Tax Rate and Budget Information

 
2020
2021
2022
M&O Tax Rate
$0.20305
$0.208851
$0.200061
Debt Service Tax Rate
$0.13345
$0.137649
$0.146439
Total Tax Rate Per $100
$0.33650
$0.346500
$0.346500
       
Budgeted Tax Revenue FY2021 FY2022 FY2023
M&O
$32,032,391
$34,044,408
$35,789,222
Debt Service
$21,051,904
$22,439,907
$26,196,699
Total Budgeted Property Tax
$ 53,083,295
$56,482,312
$61,985,921
Total Operating & Capital Budget -
$297,957,914
$388,568,065
Budget Change from FY22 to FY23 -
$89,517,359
29.9%

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.