Qualifying homeowners would see school-related property tax valuations frozen at the year they turn 55, preventing future increases in that portion of their tax bill.
Seniors already receive a partial exemption from school property taxes, which was recently increased from $10,000 to $60,000. Patrick said the proposal would save eligible Texans about $900 to $1,000 a year, or up to $10,000 between ages 55 and 65.
Patrick also called for increasing homestead exemptions by another $40,000, which would raise the exemption to $180,000 for non-seniors and to $240,000 for Texans 55 and older. A homestead exemption reduces a home’s taxable value. Under the proposal, a senior with a $300,000 home would be taxed as if it were worth $60,000, down from $100,000.
The plan comes amid Patrick’s bid for reelection. “In the last several years, the average Texas homeowner has saved $2,000 on their property taxes by homestead exemptions going up and some compression that we work in there. But that’s not enough, and we all know that’s not enough,” he said.
State Sen. Paul Bettencourt, R-Houston, chair of the Senate Local Government Committee, voiced support for the proposal.
“Increasing the ISD homestead exemption and especially lowering the senior benefit age to 55 means all 6.1 million Texas homesteads will see lifetime savings as long as they own the home. Immediately, if approved by the voters, the newly approved proposition would save [over-55s] nearly a $1,000 per year reduction and declining ISD property tax bills thereafter, as many Texas seniors have seen,” Bettencourt said.
