In a move to support early childhood education and alleviate financial strain on daycare providers, State Senator Royce West of Dallas has introduced a bill that could exempt all daycare facilities from property taxes.
If passed, this legislation aims to redirect savings toward increasing employee wages, improving facilities, and potentially lowering costs for families.
This initiative builds on a previous effort that granted tax relief to daycare centers participating in the Texas Rising Star Program, a state-certified system promoting high-quality education standards, reported Fox 4 KDFW.
The Texas Rising Star Program, which served as the foundation for the initial tax exemption, requires centers to meet rigorous standards that surpass minimum state requirements.
Facilities like the Kids Are Us Learning Center in DeSoto have benefited from these tax breaks, enabling them to reinvest in their staff and programs. “We were just approved, and it’s a great help,” shared Marga Morgan, a representative of the center.
For smaller operators leasing space, such as Journey Child Development Center, these exemptions are particularly impactful. Building owners who pass tax savings to tenants help daycare operators significantly cut operational costs.
Danyell Smith of Journey Child Development highlighted the importance of this relief, noting it allows her to focus on staff retention by offering livable wages. The financial burden of a triple-net lease, where tenants cover property taxes, utilities, and maintenance, can be overwhelming. Smith estimated a potential savings of $12,000 over the next two years, emphasizing that these funds could directly enhance employee compensation and facility upgrades.
Senator West’s new bill aims to expand tax relief to all childcare facilities, regardless of their participation in the Texas Rising Star Program. West emphasized that reducing operational costs for daycare centers could ultimately benefit families by lowering childcare expenses.
“If we can help reduce that cost, it would move to the benefit of the customers, the parents,” West explained.
Daycare providers see these proposed changes as a pathway to delivering higher-quality education in more financially stable environments. Beyond payroll enhancements, Morgan noted that tax savings could fund much-needed upgrades to equipment and facilities.
Operators like Morgan and Smith expressed optimism about the potential for these measures to transform the daycare industry, making it more sustainable and accessible for all.