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. CY denotes Calendar Year.
The 2020 tax rate was approved at 33.65 cents which is a 0.45 cent increase from the prior year. The 2020 tax rate increase was due to implementation of the first phase of the 2019 voter approved GO bonds. The GO bonds approved by voters will require a 3 cent tax increase to fund. Due to economic uncertainty from COVID-19, projects have been spread out over 5 years instead of 3 and the tax increase will be phased over 4 years rather than fully implemented in 2020 as originally planned.
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 from 2013. The City aims to utilize our financial resources efficiently, so that taxes will increase 3.1 cents over a five-year period. As of FY 2019, the City 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. The final impact was delayed until FY20.
The final series of bonds is being sold in October 2019 and the 2019 tax rate was approved at 0.332 cents which is a 2.3 cents increase rather than the full 3.1 cents approved by voters. With that, a new definition will be established in FY 2020 based on the results of the November 2019 GO Bond Election that will impact the FY21 budget. As stated in the election materials, a 3 cent tax increase is anticipated in FY21 to implement the bond program as approved by the voters over FY21-23.
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. With the 2019 tax rate, the total increase is 2.3 cents.