Actual Tax Rate
Responsible City Government
Status Indicators: Proceeding as Anticipated | Monitoring Progress | Reviewing for Improvement | Information Unavailable
Proceeding as Anticipated
Reviewing for Improvement
Please note that Q1, Q2, Q3, and Q4 refer to the first, second, third, and fourth quarters of the Fiscal Year. The City’s Fiscal Year runs from October 1st – September 30th and is denoted by FY.
This measure has met its target. In FY 2018, the actual tax rate increased to .31762 to account for the lower than expected property revaluations and sales taxes. FY 2018 includes the continuation of the Parks Bond Projects, totaling $31.5 million for which voters authorized an increase of 3.1 cents on the tax rate in 2013. To the date, the City has avoided the full tax increase authorized. Only in 2014, did the City raise the tax rate by 0.7 cents. However, with the decline in property revaluations and sales taxes, it is no longer affordable to subsidize these projects without cutting basic City services or increasing the tax rate given the current economic climate.
The result for FY 2019 will be updated in October, along with a new target recognizing that the City Council chose a new strategy of a strategic increase to the homestead exemption from 10 to 12 percent in order to offset the residential tax bill impact of an approximate 1 cent tax rate increase to implement the final voter-approved bond projects.
The City of Sugar Land uses this measure to approximate the tax burden on residents and, in turn, to plan how to best deliver return-on-investment to the community. The actual tax rate represents the amount of funds the City requires for operation and maintenance, plus the amount required for our debt service.
- The target for this measure is based on the commitment of the City to raise the property tax rate 3.1 cents over a five-year period as a result of voter approved GO Bonds. The City aims to utilize our financial resources efficiently, so that taxes will increase 3.1 cents over a five-year period. Currently, the City has raised the tax rate by 0.7 cents.
- In this measure, the actual property tax rate is provided and is measured against a target of raising property taxes 3.1 cents over a five-year period, from the 2013 rate of 0.30895, with taxes increasing one cent every other year.
- The City uses annual residential revaluations in combination with raises in the homestead exemption to offset tax increases.
- While the voter approved GO Bonds went into effect in FY 2014, the first potential for a one cent increase was not intended to occur until FY 2015, and would not be considered again until FY 2017, and then FY 2019.
- Based on debt issued to date, we have issued 21.2 million out of the 31.5 million. This equals 67% of the authorized debt issued to date with, a 2 cent impact on the tax rate.
Updated results will be available in the fourth quarter of each fiscal year.
The actual tax rate represents the amount of funds the City requires for operation and maintenance, plus the amount required for our debt service, in light of voter approved GO Bonds. An outcome of the voter approved GO Bonds was the commitment to increase taxes 3.1 cents over a five-year period. However, the City has over performed on this commitment, as the City has only had to raise taxes 0.7 cents as a result of the voter approved GO Bonds.