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.
