Property tax reform has once again taken center stage in the Texas Capitol, with Lt. Gov. Dan Patrick rolling out what he called the first draft of his next major tax-cut package. At a Tuesday press conference, Patrick outlined a series of proposals he wants lawmakers to take up when the Legislature reconvenes in January 2027 — measures that build on the more than $51 billion in statewide property tax relief enacted over recent budget cycles.
Patrick’s new package, branded “Operation Double Nickel,” focuses on expanding homestead exemptions, tightening growth constraints on local governments, and providing additional rate compression. His plan includes:
Lowering the age to qualify for the senior homestead exemption from 65 to 55
Increasing the standard homestead exemption by $40,000, bringing it to $180,000
Adding further restrictions on local government taxing authority while still allowing for limited growth
Patrick described the rollout as an “initial blueprint,” saying he, Gov. Greg Abbott, and House Speaker Dustin Burrows would “get together and discuss the entire issue” in depth before the next regular session. He estimated the senior exemption change would cost the state about $1.3 billion, with the full plan totaling under $4 billion in new spending beyond what is already allocated for local property tax relief.
Expanding Senior Exemptions and Rate Compression
Patrick emphasized that lowering the senior exemption age would give millions of Texans immediate, predictable relief.
“That means for an extra 10 years, from 55 to 65, your values are frozen. You don't ever have to worry about appraisals anymore,” he said.
According to Patrick, roughly 6.1 million Texans own homes, and 3.3 million of them would qualify under the lower age threshold. “They won't even have an issue with the appraisal,” he said, adding that their taxes would “continue to go down.”
Patrick reiterated that rate compression — a key mechanism used in recent years to reduce school district tax rates — will remain central to future property tax policy.
Rejecting Calls for Eliminating All Property Taxes
While some activists and lawmakers have pushed to phase out property taxes entirely, Patrick again dismissed the idea as unrealistic.
“If you wanna get rid of all property taxes, [you’d have to] increase the sales tax to 25- or 26-cents of every dollar; that’s how you do it. I don't think that's realistic,” he said, repeating the view he expressed in 2023 when he labeled that proposal a “fantasy.”
Abbott’s Competing Vision
Patrick’s blueprint arrives shortly after Gov. Greg Abbott released his own five-point property tax plan, which focuses more aggressively on curbing local government spending. The most sweeping part of Abbott’s proposal would ask voters to amend the Texas Constitution to eliminate school district taxes for homeowners — the single largest component of most tax bills.
Abbott has also revived the idea of an across-the-board 3 percent appraisal cap, an expansion beyond the current 10 percent cap that applies only to homesteads. A similar proposal contributed to severe tension between the House and Senate in 2023, when then-Speaker Dade Phelan championed a 5 percent cap.
Patrick, asked again about the concept, maintained his long-standing opposition.
“The appraisal cap eventually only raises taxes,” he said, pointing to New Jersey’s 4 percent cap as an example and arguing that such restrictions discourage homeowners from moving. “Pretty much no one ever moves. And that impacts our economy when we're not selling and building houses.” He added that he once supported appraisal caps when he first entered the Legislature but later concluded “it really doesn't work. It works in reverse.”
A Political Priority Heading Into 2026 and Beyond
With border issues receding as a political flashpoint — Patrick attributed that shift to actions taken by the Trump administration addressing problems “under the Biden administration” — Texas Republicans have refocused their attention on taxes. That emphasis is visible in Abbott’s reelection messaging, Patrick’s press event, and the timing of both announcements immediately after the 2026 primary filing deadline.
Patrick said the issue remains the top priority for the state’s Republican leadership.
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