Dallas County officials adopted a complete property tax exemption for local childcare facilities on Tuesday.
The Dallas County Commissioners Court approved the court order granting these tax exemptions during its regular meeting on March 5. The county was able to authorize such exemptions through the passage of Proposition 2 in the November election and supporting Senate Bill 1145, which was passed in the Texas Legislature during the 2023 regular session.
Last month, the Dallas City Council adopted a similar measure, approving a 100% tax exemption for qualifying childcare centers within its jurisdiction.
The commissioners court order will allow local qualifying childcare entities receive a 100% property tax exemption starting with the 2024 tax year and the 2025 fiscal year starting in October. This exemption will be effective for two years, ending September 30, 2026.
“Estimated maximum annual foregone revenue at 100% exemption is based on current property tax rate and the estimated total number of Dallas County childcare facilities is $562,907.92,” read the order.
Shortly before the court’s regular session began, Sen. Royce West (D-Dallas), the author of SB 1145, appeared before the court, urging the commissioners to pass the exemption on the agenda. West explained that he had put together bipartisan support to see those legislative items passed and that passing the item would provide relief to local childcare centers.
“The childcare industry is in trouble. Thanks to high costs as a result of inflation, it costs more for a childcare center to operate and to take care of our children than ever before,” said West. “You know that as well as I do in each one of your districts. That’s at a time when parents have less and less money to pay for high-quality care due to inflation and high cost of living.”
“And I hope as your partner during the legislative session and beyond that you agree with me that this is good public policy and that we need to make certain that we provide support for our childcare,” said West.
Commissioner John Wiley Price said he was disappointed that schools were not included for the prospect of tax exemption and commented that the next steps are placed upon local city and county governments.
“We’ve got some numbers, and of course, we’ll hear from both our budget and attorneys later on with regards to this, but I’m gonna tell you my consternation is, why aren’t schools in the mix?” said Price.
West responded that he would work to make such additions later as lawmakers could not “get everything at one time.” Instead, they must accomplish what is possible, “And then to the extent that it’s successful, you go back and try to get the rest of it. That’s been my history of the legislature.”
“If I can’t get 100%, I try to get as much as I can, and just because we can’t get relief from all taxing entities, I wanted to make sure I put it on your plate to consider whether or not you would provide some tax relief and then I’ll go back and try to get additional property tax relief with my good friends in the childcare industry.”
