On Tuesday, Texas voters overwhelmingly approved Proposition 4, a Texas constitutional amendment that is the capstone of this year’s efforts to reduce property taxes. Proposition 4 passed by receiving more than 83% of the vote, sending a clear message to legislators regarding the importance of reducing property taxes.

 

AAHOA (Asian American Hotel Owners Association) and the Texas Hotel & Lodging Association (THLA) worked in conjunction during the regular and special legislative sessions to ensure Texas property tax relief would include commercial hotel properties. This past March, AAHOA Past Chairman (2022-23) Nishant (Neal) Patel testified before a legislative committee during the regular legislative session, highlighting the significant amount of property taxes hotels pay every year, and emphasizing the need to reform how commercial properties are valued.

 

“Although Texas is often recognized as a low-tax state, primarily due to the absence of a state income tax, property owners in the state contend with some of the highest property tax bills in the nation,” said AAHOA President & CEO Laura Lee Blake. “AAHOA and THLA will continue to advocate on behalf of hotel owners in the state of Texas, ensuring the viability of their businesses and a reduction in unnecessary and exorbitant property taxes.”

 

According to THLA General Counsel Justin Bragiel, this is the most significant property tax reform the State of Texas has ever passed. These tax reforms will save Texas property owners, including hoteliers, billions of dollars over the coming years.

 

“As entrepreneurs and landowners, the burden of high property taxes is a significant challenge that is prevalent across the United States,” said AAHOA Chairman Bharat Patel. “It's crucial for states and legislators to revisit these tax policies to protect small businesses, as a fair and balanced approach is essential to ensure the sustained growth and job creation that our communities need. We applaud Texas voters for overwhelmingly passing Proposition 4.”

Here is a summary of property tax reform to be enacted this year with the passage of
Proposition 4:
● The appropriation of $12.6 billion in state money for public education, which reduces
the amount of local property taxes needed to fund public education.
● Increasing the exemption for the Texas franchise tax from $1.24 million to $2.47 million,
providing Texas businesses a much-needed tax break.
● Capping appraisal values on commercial properties valued at $5 million or less.
● Requiring the direct election of county appraisal district officials, which will provide
more accountability to taxpayers.
● Increasing the residential homestead exemption from $40,000 to $100,000.

You can read THLA’s full summary of the property tax reforms here.