On April 4, San Antonio City Council unanimously adopted a 100% property tax exemption for qualified childcare facilities.

The background

City officials said voters statewide in November 2023 approved a proposition that allows an exemption from property taxes on all or part of appraised value of a childcare facility.

On March 1, District 9 Council member John Courage formally proposed the introduction of a property tax exemption for qualifying childcare facilities within San Antonio city limits.

According to city staffers, as of February, the city could identify 133 properties as eligible for a property tax exemption with a total taxable value of $84 million.

A closer look

Local officials said, in order to qualify for the exemption, San Antonio childcare facilities must:

• Be licensed by the Texas Health and Human Services Commission to provide assessment, care, training, education, custody, treatment or supervision for a child who is not related to the facility owner or operator
• Be owned/operated by a participant in the Texas Workforce Commission’s Texas Rising Star program
• Ensure at least 20% of children enrolled at the facility receive subsidized childcare services

Additionally, owner-operated childcare facilities and those leased from another property owner may be considered for this exemption. The exemption may also apply to for- and nonprofit facilities.

In order to receive the exemption, the person claiming the exemption must submit an application and required documentation to the Bexar Appraisal District. The newly extended deadline to apply for the 2024 tax year is May 15, city officials said.

What they’re saying

Courage said he is happy that council approved the childcare facilities tax exemption, saying that by doing so, the city recognizes childcare’s role in supporting families and nurturing the future workforce through tax relief, according to a spokesperson for Courage.