Most of the new Texas laws affecting business took effect last month, but a few are constitutional amendments up for statewide vote, plus a few local propositions on, Nov. 4.
Among the most consequential ballot measures is a referendum on Project Marvel, the $4 billion plan for a downtown mixed-use development built around a new Spurs arena.
Proposition B would allow Bexar County to use $311 million of the venue tax money to fund the arena. Proposition A would raise the county’s hotel occupancy tax to collect $197 million to redevelop the San Antonio Stock Show and Rodeo grounds.
The project also includes a convention center expansion, a 5,000-seat entertainment venue in the John Woods Courthouse and upgrades to the Alamodome. Local leaders have sought funding from a variety of sources, including tax credits, venue taxes and the Spurs organization.
Newly elected San Antonio Mayor Gina Ortiz has been skeptical of the project and the size of the team’s contribution.
A recent poll found middling support for both measures.
Here’s what is on the statewide ballot.
Protecting Y’all Street
Proposition 6 is basically red carpeting for Y’all Street. The measure would prohibit the legislature from imposing an occupation tax on financial market operators, such as exchanges, and from creating new taxes on securities transactions. Sponsors filed the legislation in response to proposed taxes in New York and New Jersey which prompted Nasdaq to consider moving to Texas.
Property taxes
Three statewide provisions would offer property tax relief. Proposition 11 would authorize the legislature to raise 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 authorize the legislature to cap the value of land in Texas border counties if it appreciates due to border security improvements.
At the local level, Austin voters will consider Proposition Q, a property tax rate hike. The increased revenue will support programs intended to increase housing affordability and reduce homelessness, according to the city, including $12 million to fund 350 new housing units.
Inheritance tax
Texas doesn’t have an inheritance tax, but Proposition 8 would permanently ban the legislature from establishing one.
An inheritance tax is a levy on bequests. The heir is responsible for paying the tax.
The amendment would ban such taxes on the state level, as well as taxes on the transfers of estates, inheritances, successions or gifts from one person, family, estate or trust to another. Estate taxes are similar to inheritance taxes but are paid by the estate or trust itself before distribution to heirs.
A tenth of recent American homebuyers relied on an inheritance for their purchase, according to Redfin. An inheritance tax could shrink this share of buyers in Texas, or reduce their buying power.
Five states have an inheritance tax. There is also a federal estate tax, though it’s only required for estates with combined gross assets and prior taxable gifts exceeding $15 million, or $30 million for married couples.
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