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 increase the exemption to $180,000 for non-seniors and to $240,000 for Texans 55 and older. A homestead exemption reduces the taxable value of a home. 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 re-election. “Over the last few years, the average homeowner in Texas has saved $2,000 on their property taxes because of the increase in homestead exemptions and the compression we’re putting out there. But that’s not enough, and we all know that’s not enough,” he said.
State Sen. Paul Bettencourt, R-Houston, chairman of the Senate Committee on Local Government, expressed support for the proposal.
“Increasing the ISD homestead exemption and especially lowering the retirement age to 55 means that all 6.1 million Texas homesteaders will see lifetime savings for as long as they own the home. If the newly approved proposal is immediately approved by voters, it would provide savings [over-55s] almost a $1,000 per year reduction and then declining ISD property tax bills, as many Texas seniors have seen,” Bettencourt said.
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