Most new Texas laws affecting businesses took effect last month, but several proposed constitutional amendments and local measures related to real estate will appear on the statewide ballot on November 4.
One of the most significant proposals is a referendum on Project Marvel, a $4 billion plan to develop a downtown mixed-use area centered around a new Spurs arena. Proposition B would allow Bexar County to allocate $311 million from venue tax funds for the arena. Proposition A seeks to 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 plans for expanding the convention center, building a 5,000-seat entertainment venue in the John Woods Courthouse, and upgrading the Alamodome. Local officials have looked for funding through 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 Spurs’ financial contribution. Recent polling has shown only moderate support for both measures.
Statewide, Proposition 6 would prevent the legislature from imposing occupation taxes on financial market operators and from creating new taxes on securities transactions. This measure was introduced in response to similar taxes proposed in New York and New Jersey, which led Nasdaq to consider relocating to Texas.
Three other statewide provisions aim to provide property tax relief. 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 allow legislators to cap land values in Texas border counties if those values rise due to border security improvements.
At the local level, Austin voters will decide on Proposition Q, which proposes a property tax rate increase. The city says this revenue will fund programs to boost housing affordability and reduce homelessness, including $12 million for 350 new housing units.
Proposition 8 addresses inheritance taxes. While Texas does not currently have an inheritance tax, this amendment would permanently prohibit the legislature from establishing one. The measure would also ban 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 estates before assets are distributed. Five states currently have an inheritance tax, and there is also a federal estate tax that applies only to 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 for their purchase; an inheritance tax could affect this group’s ability to buy homes in Texas.
