Property Tax Exemption for Child Care Facilities Amendment

Dedicated Funding Streams

  • Property Tax

Expansion

  • Physical Space and Facilities

Texas

In November of 2023, Texas voters passed Proposition 2, approving a constitutional amendment that will allow counties or municipalities to authorize a property tax exemption on all or part of the appraised value of property used to operate child care facilities. The exemption must equal at least 50% of the property’s appraised value. Advocates for the amendment were aiming to alleviate some of the financial burdens that Texas child care facilities face.

For a child care facility to be exempt, it must be both licensed and part of the Texas Rising Star Program, a quality rating and improvement system for child care programs that participate in the Texas Workforce Commission’s Child Care Services. At least 20% of the children enrolled in the facility’s child care program must receive subsidies or scholarships from the Texas Workforce Commission. Home-based child care facilities will not be eligible. Proposition 2 will go into effect in January 2024. 

Sources:

Ballotpedia. (2023). Texas Proposition 2, Property Tax Exemption for Child-Care Facilities Amendment.

KXAN. (2023). Proposition 2: Texans vote on child care property tax exemption.

Connections to Key Early Learning Study at Harvard (ELS@H) Findings:

High-quality, affordable early education and care supports children’s healthy development and allows families to work, engage in their own educational pursuits, and/or participate in other aspects of community life. To support children and families in these instrumental ways, research suggests there is a need to expand the availability of early education opportunities across the mixed-delivery system.

Findings from the Early Learning Study at Harvard (ELS@H) show:

  • Families rely on a range of formal (e.g., Head Start, center-based care, public pre-K) and more informal (e.g., home-based, relative care) early education settings; when choosing a setting for their child, families balance many logistical constraints and personal preferences.
  • But for many families – and especially low- and middle-income families – early education choices remain tightly constrained due to issues of affordability and supply.
Learn More about ELS@H Findings

Learn more about Texas

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  • The state population is 30,029,572
  • The percentage of children under 6 with all available parents in the workforce is 62%
  • The rural percentage is 16.3%