Texas leaders, Gov. Greg Abbott and Lt. Gov. Dan Patrick, have each pitched their property tax relief plans, albeit with contrasting strategies, Patrick advocating for an extension of the homestead exemption reduction from 65 to 55 and an increase to $180,000 for all homeowners—a shift which, he admitted in a KXAN interview, would cost the state budget about $1.3 billion, yet he deemed it "very doable" given Texas' revenue growth.
Despite the shared goal of reducing tax bills, Patrick has questioned the feasibility of Abbott's approach to abolish school district property taxes for homeowners entirely, highlighting in a news conference that such a move may necessitate a significant increase in sales tax: "You’d have to go from eight and a quarter cents to 14 or 15 cents," he told KXAN. Abbott, on the other hand, believes state surplus is sufficient for this endeavor, arguing at an event in Weslaco that "All we gotta do is use our budget surplus from our roaring economy to make sure we abolish one of your property taxes in this state," ignoring the lingering concern over what that might mean for funding educational and other governmental services.
On the front of immediate action toward abolishing school property taxes on homesteads, Patrick shared a longer-term vision during his CBS News interview, declaring "Once we eliminate all school taxes, which I think we can do, and in total for everyone in two or three sessions total, once you get that done, well, that's 40% of a property tax bill that's just going to go away."
Furthermore, Patrick revealed plans for a substantial increase in the homestead exemption from $140,000 to $240,000 for those aged 55 and above, explaining this maneuver as a direct path to lasting tax relief, saying "By lowering it to 55, out of our six million homeowners in Texas, three point three million will have their appraisals frozen for the rest of their life. That's significant," as per CBS News.
While both state leaders are evidently at divergence regarding the particulars, their resolve to collaborate and provide tax relief to Texans appears steadfast, with Patrick stating, "I'm not competing with him on my tax plan or his tax plan," and Abbott’s press secretary, Andrew Mahaleris, affirming in a statement the Governor's readiness "to working with the Lieutenant Governor, the Speaker, and all lawmakers on thoughtful policy that gives taxpayers more control over their property taxes," CBS News noted.
