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Travis County approves tax breaks for child care providers

Monday, April 1, 2024 by Nick Erichson

On Tuesday, the Travis County Commissioners Court unanimously approved a 100 percent property tax break to qualifying child care centers in the county. The decision comes close on the city of Austin’s heels; the city passed a similar break in January and was the first city in Texas to do so after the passage of Proposition 2, which formally enabled child care facilities to receive property tax abatement of 50 percent to 100 percent.

Staff estimates approximately 50 facilities across the county will be eligible for the relief funding, and County Judge Andy Brown noted that the 100 percent exemption “will not have a destructive effect to our budget overall,” which he classified as “a good thing.”

“We’re talking $258,000 on a billion-dollar budget,” said Travis Gatlin of the Planning and Budget Office. 

But in a county with a minimum 18-month wait list for child care, two years for state financial assistance programs, a median child care worker wage of $12, a wave of closures during the pandemic and a great number of home-based care operations ineligible for funding, the exemption won’t fix all of Travis County’s child care woes.

After a litany of calls in support of the item, Commissioner Jeff Travillion highlighted the downstream benefits of expanded child care services, including job creation and jail diversion, and stressed the importance of compensating workers with a living wage.

“I think that this is going to be one of the most important issues that we address. We need to address it comprehensively,” he said. “I think that extending tax relief is a constructive thing, but we have got to look at the whole system so that we are not only making a safe learning space for our infants, but really through 12th grade, something that allows us to to … address school-to-work issues rather than school-to-jail issues.

“(It’s) just a piece of the puzzle, but I think it’s an important piece,” Travillion said.

Child care facilities must meet multiple criteria in order to qualify for the exemption. Travis County’s language specifies that applicants:

  • Be a licensed child care facility;
  • Be a Texas Workforce Commission (TWC) Texas Rising Star program participant; 
  • Have at least 20 percent of their children enrolled in TWC’s Child Care Services (CCS) program.

Pandemic federal relief funding for child care providers will expire later this year, and officials hope the tax breaks help high-quality centers remain open.

“We applaud the Travis County Commissioners Court for providing vital tax relief and supporting child care providers and families,” Barbara Grant Boneta, director of the Austin/Travis County Success By 6 Coalition, United Way for Greater Austin, said in a statement to the press. “Child care providers, many of them operating on razor-thin margins, need all the help they can get. This decision represents a significant stride towards ensuring that parents can pursue careers and opportunities with peace of mind, confident that their children are receiving high-quality care during those crucial early years.”

Property owners hoping to qualify for the exemption must submit an Application for Child-Care Facility Property Tax Exemption, Form 50-844, to the Travis Central Appraisal District (TCAD) by April 30, 2024. Those forms can be found here.

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