'Seniors' may soon be 10 years younger when it comes to Texas property tax breaks

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AUSTIN - Texas Lt. Gov. Dan Patrick announced the launch of "Operation Double Nickel" on Tuesday, which would lower the age used to designate senior citizens who qualify for saving money on property taxes. 

Patrick also wants to increase homestead exemptions by another $40,000 through the operation. 

Texas ‘Operation Double Nickel’

What's new:

Through Operation Double Nickel, Texas would extend the senior status to about 3.3 million more residents, Patrick says.

The property tax savings would include the freezing of school-related property tax valuations, which locks the amount of property tax designated for schools to the year a resident qualifies for the exemption. That would mean the year a Texas homeowner turns 55, that section of property tax would stop increasing. 

Texas seniors are partially exempt from school property tax as well. This amount was recently increased from $10,000 to $60,000.

Qualifying Texans are expected to save about $900 to $1,000 per year if the proposal is passed; up to $10,000 in savings between the new qualifying age of 55 and the previous bar of 65. 

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Planned homestead exemption increases

Patrick also said he wants to increase homestead exemptions by another $40,000. 

The increase would take the exemption from $140,000 to $180,000 for non-seniors, and from $200,000 to $240,000 for Texans over the age of 55. 

A homestead exemption reduces a home's assessed value for tax purposes. For example, a senior Texan with a home worth $300,000 would be taxed as if it were worth $100,000. If Patrick's proposal were adopted, that number would be lowered to $60,000. 

What's next:

Patrick offered up the idea to the Texas Legislature, recommending the proposal be addressed in the next session. 

Long-term, Patrick said he hopes to see school property tax eliminated in Texas. 

Recent Texas property tax decreases

Texas legislators passed two bills this session regarding property tax breaks for homeowners. 

Senate Bill 4 increased the homestead exemption from $100,000 to $140,000, reducing how much a home’s value can be taxed. The bill also guarantees school districts would not lose funding as a result of the exemption.

Senate Bill 23 increased the homestead exemption for older homeowners and those with disabilities from $10,000 to $60,000.

Proposition 7 approved a larger break on homestead exemptions for surviving spouses of Texas veterans that died from a service-connected illness.