We’ve been diving into Governor Abbott’s property tax relief proposals as we get deeper into campaign season. Now, let’s look at Lieutenant Governor Patrick’s proposals. I know this is a lot, but we need to understand the different approaches from the “Big Three.”
Lieutenant Governor Patrick’s proposals (quick review)
- Lower the “senior” ISD tax-freeze age from 65 to 55 (freeze ISD taxable value earlier for more homeowners).
- Increase school district homestead exemptions to $180,000 for the general exemption and $240,000 for seniors/disabled.
- Increase ISD M&O “compression” (buy down the M&O rate with state funds).
The current situation
In the November election, voters approved increasing the general school district homestead exemption from $140,000 to $180,000, and the senior exemption (age 65 and over) to $200,000.
Under current state law, local governments can authorize a tax limitation (often called a “tax freeze”) for residents 65 and over. In addition, cities and counties may authorize an additional homestead exemption for seniors.
| County/City | OV65 | Disabled Person |
| Rockwall County | $35,000 | $0 |
| City of Fate | $50,000 | $50,000 |
| City of Heath | $3,000 | $3,000 |
| City of McLendon-Chisholm | $30,000 | $30,000 |
| City of Rockwall | $60,000 | $0 |
| Average | $35,600 | $16,600 |
Figure 1 – Rockwall County Data
Impact of “Operation Double Nickel”
Let’s talk about lowering the senior “tax freeze” age and expanding homestead exemptions from 65 to 55.
The proposal would expand the number of homestead properties eligible for a tax freeze and an increased $40,000 homestead exemption. In practical terms, eligible homeowners with a homestead exemption would reduce their taxable value by an additional $40,000.
Lieutenant Governor Patrick has described a step-by-step approach to property tax relief, pushing rates down over time to reduce Texans’ property tax burden as much as possible.
The key question is this: How many Rockwall County residents with homestead exemptions are age 55 and older?
For this initial estimate:
- The 65+ figures were obtained from the Rockwall CAD 2025 appraisal roll data for the cities.
- The 55–64 figures were estimated using North Central Texas Council of Governments (NCTCOG) age distribution data. Specifically, I assumed 50% of the 45–64 age group is 55–64, and used that to develop estimates. Boring, I know. Yes, we can use different numbers for the 50% assumption, but this is a good starting point.
Here are some interesting insights, but not perfect.
| County/City | OV65 | 55 to 65 | OV55 | % OV55 |
| City of Fate | 1,106 | 4,364 | 5,470 | 24% |
| City of Heath | 1,243 | 2,231 | 3,474 | 15% |
| City of McLendon-Chisholm | 357 | 566 | 923 | 4% |
| City of Rockwall | 4,395 | 8,764 | 13,159 | 57% |
| Total | 7,101 | 15,925 | 23,026 | 100% |
| Average | 1,775 | 3,981 | 5,757 |
Figure 2 – Rockwall County City Data
We could use a lot of facts and figures to show “senior density” by city. For example, Fate has a senior-density ratio of 3.95.
In simple terms, the number of residents eligible for a “tax freeze” and an increased $40,000 homestead exemption would increase by a factor of 3.2 or about a 224% increase.
And I’ll save you the headaches of a deep data analysis because nobody wants to spend their weekend arguing with spreadsheets and age brackets.
Here are some of the questions our city councils to consider.
- Should the 65+ tax freeze be expanded to residents 55 and over?
- What would the property tax impact be on cities under a 3.5% cost cap?
- What would the property tax impact be on cities under a 3.5% cost cap and expanding the exemptions/tax freeze to residents 55 and over?
- What would the resulting tax shift be to small business owners and other non-homestead properties?
In today’s environment of regulatory uncertainty at the state level, three-year financial planning can be a valuable tool for understanding the impact of future, state-imposed property tax regulations.
Over the next two weeks, we’ll tackle two special article requests, both timely, both practical, and both likely to spark some good discussion. Stay tuned.
Civic Insights with David Billings
About the Author
David Billings, retired Mayor of Fate, has served the community for over a decade. A longtime business leader in the telecommunication industry, Navy veteran, and resident of Rockwall County, he brings both professional and civic experience to his writing on government, budgeting, and local economics. He is a graduate of Leadership Rockwall, North Texas Commission Leadership Program, active in several Rockwall County non-profits boards, and the American Legion.
He is passionate about civic involvement in local government, maintaining transparent governance and thoughtful strategic planning to preserve a bright future for the regions.
