Sugar Land homeowners may soon experience significant tax relief as City Council considers an ordinance to raise the homestead exemption.

The big picture

City Council is actively discussing an increase in the homestead exemption, a provision that reduces the taxable value of residential properties.

According to a report from Director of Fiscal Projects Jennifer Brown, preliminary data from the tax roll indicates an average 10% surge in residential values compared to the previous year.The city recommended a 2% hike in the homestead exemption for the upcoming 2023 fiscal year. The objective of this adjustment is to decrease the average residential tax bill by 7.5% when compared to the preceding year, assuming a consistent tax rate, Brown said.

By the numbers

Council has consistently raised the residential homestead exemption to alleviate the overall tax burden on Sugar Land residents. The proposed increase to 15% from 13% for the 2023 tax year aligns with this ongoing trend.

Here is how homestead exemption rates have progressed in the city since 2007:
  • 5% in 2007
  • 7% in 2008-14
  • 8% in 2015
  • 10% in 2016-19
  • 12% in 2019-21
  • 13% in 2022
  • 15% in 2023 (proposed)

What’s next

Residents are encouraged to share their feedback during the upcoming City Council meeting scheduled for June 20. The final decision on the ordinance must be adopted before July 1 to take effect for the current tax year.

If approved, the ordinance will deliver substantial tax relief to homeowners, Brown said. City Council expressed unanimous backing for the proposed 2% increase in the homestead exemption, with a 7-0 vote in favor of the ordinance.