Lt. Gov. Dan Patrick unveils his own property tax reform plan that differs from Gov. Abbott's proposal
Lt. Gov. Dan Patrick's plan to reform property taxes in Texas works differently from Gov. Greg Abbott's proposal.
Lt. Gov. Dan Patrick unveils "Operation Double Nickel"
During a news conference at the Texas Capitol on Tuesday afternoon, Patrick outlined what he calls Operation Double Nickel. Homeowners 65 and over currently have their homestead values frozen, and Patrick wants to lower the age to 55. He said if approved, it will impact more than 3 million homeowners in Texas.
In addition, Patrick wants to raise the homestead exemption again, from $140,000, which will go into effect this year, to $180,000.
He also wants to pass legislation limiting property tax increases that local governments can pass on to homeowners. Patrick said this will be one of his top priorities during the next legislative session, which will start in January of 2027, just over one year from now.
Many homeowners continue to complain about their property taxes. Abbott's plan includes passing a constitutional amendment to eliminate school property taxes on all homesteads in Texas and capping appraisals. But Patrick said he believes his plan is more cost-effective.
"I'm just saying the way to do it is through homestead exemption and lowering that threshold, which locks in their values forever," said Patrick. "Think about this, if you're a homeowner who's watching now, and you say I'm not 55, but if you're 48 or 51, I can get my value frozen in 5 or 6 years instead of 16 years, that's a big deal."
Property tax expected to shape 2026 campaign trail
In a statement, Abbott's Press Secretary said, "Texans demand lasting property tax relief. Governor Abbott looks forward to working with the Lieutenant Governor, the Speaker, and all lawmakers on thoughtful policy that gives taxpayers more control over their property taxes, reins in local government spending, slashes appraisal increases, and eliminates school district property tax for homeowners. Governor Abbott will fight for taxpayers and his comprehensive plan throughout 2026, and he looks forward to working with lawmakers to deliver lasting property tax cuts."
Both the governor and perhaps Patrick will be campaigning for their plans on the campaign trail during the next year before the legislative session begins.
Gov. Abbott says Texas can afford to eliminate school property taxes on homesteads while fully funding education
Gov. Greg Abbott is making property tax reform his top priority as he runs for re-election for a record fourth term.
The governor is holding campaign rallies across the state, including in Fort Worth last week and Frisco last month, to talk about his proposals. His plan would limit local government spending growth to population and inflation, or 3.5%, the lesser of the two, require two-thirds approval on all local property tax increases, and allow voters to call for a rollback election to lower property taxes.
It will also cap appraisal growth at 3% and appraise all properties once every five years. Abbott is also calling for a constitutional amendment to eliminate school property taxes on homesteads.
When asked about how his plan to eliminate school property taxes on homesteads would pay for schools, Abbott told CBS News Texas the state can cover the costs right now.
"The way we are able to pay for it is through the budget surplus that we run year after year after year," Abbott said. "Our annual surplus exceeds the amount that it would cost for the state to fully fund education. If we implement the cuts that I'm proposing."
Abbott said the state can handle funding under his plan because eliminating school property taxes would only include homesteads and not all property owners.
"There's a huge math difference between the two. But if it just includes a homestead, and if you look at the last four years, we've had far more budget surplus than is needed to make sure we make our schools fully funded. The reason why I use only the last four years is because the two years before that had the two years after COVID, where the states got so much money that the budgets were outsized. I'm using post-COVID money time periods when our budget was plentiful. When you look at our growth trajectory, we're going to have plenty of income to make sure we're going to be able to pay for these property tax cuts," he said.
Abbott insisted the state can do that without raising other taxes.
"No tax that currently exists would need to be increased in order to pay for this," said Abbott.
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