At its June 7 meeting, Sugar Land City Council voted unanimously to approve increasing the city’s homestead exemption by 1% in the first of two readings. The tax cut sits at 12% and would be increased to 13%, going into effect for the 2022 tax year. It will lower tax bills and “address increases in property values,” according to a press release from the city.

"Based on the 2022 preliminary tax roll, property values in our city are increasing at a rate not seen before," Sugar Land City Manager Michael Goodrum said in a release. "One way we can address residential value growth is through the homestead exemption, which reduces taxable value by taking a percentage off the assessed value. This ultimately reduces the tax burden for residents."

According to city officials, the exemption will account for $400,000 in citywide savings—or $15 per year on a home valued at $420,000—based on the city's current tax rate of $0.3465. According to the city’s press release, homestead exemptions in Sugar Land have been raised from 1% to 12% since 2007. That increase accounts for the equivalent of $0.03 on the city's tax rate, which is already the second lowest in the state for cities of a similar size.

According to the release, the city has no control over appraisals.

​​”This is pretty consistent, I think, with what we've always strived to do,” Mayor Joe Zimmerman said. “This is a responsible way to give our homeowners a little bit of a breather from a tax rate without reducing our overall tax rate.”



Next steps for the approval are set to take place June 21 when City Council is scheduled to approve the exemption increase on its second reading. The city’s tax rate is set to be finalized in September.