Increasing Homestead Exemption for seniors not a win for local ISDs

MIDLOTHIAN – Last week, Lt. Gov. Dan Patrick released a statement on the unanimous passing of SB 4 and Senate Joint Resolution 2 to increase the Homestead Exemption to $140,000, and $150,000 for seniors.

Texas Sen. Paul Bettencourt, (R-Houston) said, “I have been fighting to reduce property taxes long before I was elected to the Texas Senate. I have made increasing the Homestead Exemption my mission because it is the best way to deliver meaningful property tax reductions for homeowners.”

Patrick said when he became Lt. Governor in 2015, the Homestead Exemption was $15,000 as compared to today at $100,000 – and $110,000 for seniors. 

In 2023, the $100,000 Homestead Exemption was permanently codified into the Texas Constitution when voters passed Proposition 4 with 83% of voters in support. 

Translated, this means $100,000 Homestead Exemption is permanent allowing homeowners to receive tax relief forever.

“The Senate’s passage of SB 4, which increases the Homestead Exemption to $140,000, and $150,000 for seniors, builds on last session’s historic success, Patrick said. 

“Once signed into law and voters approve the constitutional amendment proposition in November 2025, the $140,000 Homestead Exemption will be codified in the Texas Constitution forever.”

According to Patrick’s media release “492 school districts (49% of Texas school districts) have an average home value under $140,000, meaning school M&O property taxes will be eliminated for the average homeowner in those districts. 

Estimates show the average Texas homeowner will save $363.44 due to this increase. When combined with the school tax rate compression already included in the budget, the average Texas homeowner will save $496.57.”

In 2023, the Texas Senate delivered a tax cut of $1,266.30 for the average homeowner.

Patrick explained that when tax cuts from 2023 and 2025 are combined, homeowners will be receiving a total tax cut of $1,762.87. 

Seniors will receive a combined tax cut of $1,933.23, resulting in a 58.5% reduction in school district property taxes for seniors from 2023 to the present.

“Based on the unanimous 30-0 vote, it is clear Senators from both sides of the aisle understand that when an increased Homestead Exemption and more compression are combined, homeowners receive maximum tax relief benefits.”

Gary Vineyard, Board President, Midlothian ISD said of the exemption, “While this is a win for the taxpayer, this will affect the school districts across Texas that rely in these dollars to fund public education. 

“With the continued effort to increase property tax savings for homeowners, the aftermath for school districts will increase an already difficult situation in their budgets. 

“The majority of school districts across Texas are already facing multi-million dollar deficits.”

In fact, Vineyard said the numbers are at more than 85% of Texas families rely on public education for their children. 

“The constant attack on public education from Texas legislation backed by billionaire donors comes at a drastic cost across this great state,” Vineyard continued. 

“There must be a balance to properly fund and educate the children of Texas schools. 

“Right now, that doesn’t exist thanks to Texas legislators who have failed at their elected roles.”

“From an education standpoint Vineyard reminded, “School districts across Texas have been forced to close schools or consolidate due to lack of school funding because legislation has failed the past two legislative sessions. Will they fail for a third time? Time will tell.” 

Ellis County Judge Todd Little added “This will assist homestead owners and reduce the impact of increasing appraisals. Unfortunately, with all politics there are winners and losers. This will not assist increasing taxes on commercial or rental properties. So, renters and tenants of buildings can expect to pay more rent in the future.”

Winners and losers indeed, but Vineyard is adamantly hoping the ISD will not come out as a loser on this one as he concluded, “I sincerely hope those we elected to represent us hear the message that the attacks on public education must stop. Public education has not received an allotment increase per student since 2019 yet inflation costs for all goods have soared.”