Most new Texas laws impacting businesses took effect last month, but several constitutional amendments and local propositions will be decided by voters on November 4.
One of the major statewide ballot items is a referendum on Project Marvel, a $4 billion plan to create a downtown mixed-use development centered around a new Spurs arena. Proposition B would allow Bexar County to allocate $311 million from the venue tax to help fund the arena. Proposition A seeks to raise the county’s hotel occupancy tax, aiming to collect $197 million for redeveloping the San Antonio Stock Show and Rodeo grounds.
The broader project plan also includes expanding the convention center, constructing a 5,000-seat entertainment venue at the John Woods Courthouse, and making upgrades to the Alamodome. Local officials have explored various funding sources, such as tax credits, venue taxes, and contributions from the Spurs organization.
San Antonio’s newly elected mayor, Gina Ortiz, has expressed skepticism about the project, particularly regarding the size of the Spurs’ financial contribution. Recent polling has shown moderate support for both propositions.
On the statewide ballot, Proposition 6 is designed to prevent the legislature from imposing an occupation tax on financial market operators or introducing new taxes on securities transactions. This measure was proposed after discussions in New York and New Jersey about similar taxes led Nasdaq to consider relocating to Texas.
Three statewide property tax measures are also up for vote. Proposition 11 would allow the legislature to increase the school property tax exemption for elderly and disabled homeowners from $10,000 to $60,000. Proposition 13 would raise the homestead exemption from school district property taxes from $100,000 to $140,000 for all homeowners. Proposition 17 would give lawmakers the authority to cap land values in Texas border counties if property values rise due to border security improvements.
Austin voters will also decide on Proposition Q, which proposes a property tax rate increase. The city says the additional revenue would go toward programs aimed at boosting housing affordability and reducing homelessness, including $12 million earmarked for 350 new housing units.
Proposition 8 addresses inheritance taxes. Although Texas currently does not have such a tax, this measure would permanently ban the legislature from creating one. The amendment would also prohibit taxes on estate transfers, inheritances, successions, or gifts between individuals, families, estates, or trusts. Inheritance taxes are paid by heirs, while estate taxes are paid by the estate itself before assets are distributed. Five states currently have an inheritance tax, and there is a federal estate tax for estates with assets exceeding certain thresholds.
A recent report from Redfin indicated that about 10 percent of recent homebuyers in the United States used an inheritance for their purchase. An inheritance tax could potentially reduce this share or limit buying power in Texas.
