Lt. Gov. Dan Patrick is pushing for another boost to Texas’s homestead exemption, aiming to extend property tax relief in the upcoming legislative session and broaden cuts for homeowners aged 55 and older.
During a Tuesday press conference, Patrick framed the plan as a policy that treats 55-year-olds like traditional seniors, saying, “I don’t consider seniors 55, but in this case, I want to treat them like a senior who’s 65.” He dubbed the proposal “Operation Double Nickel.” If enacted, the average homeowner over 55 could save roughly $900 to $1,000 annually, and about 3.3 million of Texas’s roughly 6.1 million homeowners would see their property values frozen.
Patrick asserted that, under current conditions, the average Texas senior homeowner no longer pays school taxes for life. The plan builds on a constitutional amendment voters approved in November that raised the homestead exemption from $100,000 to $140,000. The next legislative step would add another $40,000, elevating the exemption to $180,000 for those under 55 and to $240,000 for residents 55 and older.
The total cost of the full plan is estimated at about $4 billion, a figure Patrick described as “very doable.” He said Texas is now on a path to eliminate school property taxes for homeowners in the coming years, arguing that gains already achieved for seniors would accelerate for those aged 55 and up, with longer-term prospects for broader elimination.
Patrick noted that he has not yet discussed the proposal with Gov. Greg Abbott, who recently proposed abolishing school taxes via a statewide vote. Patrick argued that cutting school taxes would not deprive schools of funding, explaining that state-level allocations would cover school property taxes funded by the state’s growing economy. He claimed that local districts would not lose money because the state would already be providing the necessary funds.
However, not everyone agrees. The Texas American Federation of Teachers (AFT), a statewide group representing public school employees, argued last year that local property taxes remain a crucial source of school funding for operating expenses—teacher salaries, student programs, resources, and maintenance. The union warned that shifting to more state funding could reduce local control over schools and community services.
Patrick also addressed a broader funding concern: abolishing all property taxes would necessitate a substantial sales tax increase—to about 25 or 26 cents per dollar—which he said is not realistic. He emphasized a cautious approach, expressing a preference to avoid passing burdens to future leaders and asserting a responsibility to “do it right” when handing off leadership to the next generation.
