South Brazoria News

As Pearland and Friendswood begin their budget seasons, one thing remains unclear: the exact financial toll of the COVID-19 pandemic.

Both cities hope next year's budget will be minimally affected and are focusing on making decisions to put them in the best shape for the future. Each relies on property taxes more than sales tax for its general revenue, and property values in both Brazoria and Galveston Counties are projected to rise this year. Property valuation estimates will give the cities an estimate of how many dollars they have to work with.

Citizens are also able to protest their property values and it's likely more will do so since they are home and have time. Galveston County Tax Assessor-Collector told Community Impact Newspaper it's unlikely as many will be successful as were in the wake of Hurricane Harvey.

In April, state Sen. Paul Bettencourt (R-Houston) asked that the disaster tax exemption be applied to properties that had suffered an economic loss, as opposed to restricting the exemption to physical damage. Texas Attorney General Ken Paxton denied this request, and therefore people affected financially by the virus will likely not be able to have their property values reduced.

Sales tax, which contributes 20-25% of each city's general fund budget, has taken the most significant hit. Less consumer spending results in less money moving in the economy. Pearland's sales tax revenue is down nearly 4% from the same time last year, while Friendswood's sales tax revenue is up nearly 10% from the same time last year.