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 most significant measures is a referendum on Project Marvel, a $4 billion plan to build a downtown mixed-use development centered around a new arena for the San Antonio Spurs. Proposition B would allow Bexar County to allocate $311 million from the venue tax to fund the arena. Proposition A would increase the county’s hotel occupancy tax to raise $197 million for redeveloping the San Antonio Stock Show and Rodeo grounds.
The broader project also includes expanding the convention center, creating a 5,000-seat entertainment venue in the John Woods Courthouse, and making upgrades to the Alamodome. Funding sources have included tax credits, venue taxes, and contributions from the Spurs organization. Newly elected San Antonio Mayor Gina Ortiz has expressed skepticism about the project and questioned the size of the team’s financial contribution. Recent polling shows moderate support for both measures.
Statewide, several ballot proposals address property taxes. Proposition 11 would let lawmakers raise the school property tax exemption for elderly and disabled homeowners from $10,000 to $60,000. Proposition 13 would increase the homestead exemption from school district property taxes from $100,000 to $140,000 for all homeowners. Proposition 17 would give legislators authority to cap land values in Texas border counties if property values rise due to border security improvements.
Austin voters will consider Proposition Q, which proposes a property tax rate increase to fund programs aimed at improving housing affordability and reducing homelessness. The city plans to use $12 million from this revenue to fund 350 new housing units.
Proposition 6 seeks to prevent new occupation taxes on financial market operators such as exchanges and prohibits taxes on securities transactions. The measure was introduced after similar taxes were proposed in New York and New Jersey, leading Nasdaq to consider relocating to Texas.
Proposition 8 would permanently ban any inheritance tax in Texas, as well as taxes on estate transfers, inheritances, successions, or gifts between individuals or entities. Currently, Texas does not have an inheritance tax, but five other states do, and there is a federal estate tax that applies only to large estates with assets and prior taxable gifts exceeding $15 million, or $30 million for married couples. According to Redfin, about one-tenth of recent American homebuyers used an inheritance to purchase their homes, so an inheritance tax could reduce this share or their purchasing power in Texas.
For more information about how real estate issues have been addressed in recent Texas legislative sessions, visit https://therealdeal.com/texas/2023/06/01/how-did-real-estate-fare-in-the-texas-legislature/. For details on San Antonio’s mayoral stance regarding the Spurs arena development, see https://therealdeal.com/texas/san-antonio/2023/06/01/san-antonios-new-mayor-critical-of-4b-spurs-arena-development/. For coverage of Arlington’s response to local zoning deregulation, refer to https://therealdeal.com/texas/dallas/2023/05/30/arlington-looks-to-thwart-texas-local-zoning-deregulation/.
