San Marcos and Kyle city councils unanimously approved a 100% property tax exemption for qualifying child care facilities in their respective cities April 16.

How we got here

In the November election, voters passed Proposition 2, which gives city and county governments the option to offer a 50%-100% property tax exemption for licensed child care facilities.

Senate Bill 1145 was designed to give licensed child care providers relief from higher taxes regardless of whether they own or rent the facility in which it is located.

Hays County commissioners also approved a 100% exemption from the county’s ad valorem property tax March 12.

What you need to know

In order to qualify, a child care facility must:
  • Be licensed
  • Be a Texas Workforce Commission, or TWC, Texas Rising Star program participant
  • Have at least 20% of children enrolled in TWC’s Child Care Services Program
Although licensed child care facilities, including licensed homes, are eligible for the tax exemption, registered child care homes are not.

The law also prohibits home-based providers from claiming both the residence homestead exemption and the child care exemption, according to agenda documents.

What they’re saying

Kyle Mayor Travis Mitchell noted that the pandemic came to his mind when the item was first being discussed.

“I’m happy to see this come back around and for us to be able to show some love back towards a particular section of the market that was really struggling,” Mitchell said.

San Marcos Mayor Jane Hughson said it was “wonderful.”

“I’m glad the Legislature did this,” Hughson said.