The Austin City Council approved a 100% property tax exemption for eligible child care centers, making Austin the first Texas city to do so. In November, the Council approved a resolution from Council Member Alison Alter to advance this effort after the passage of Texas Proposition 2. Today, the Council adopted the ordinance formalizing that exemption for the 2024 tax year and beyond.
“Today’s action reflects a commitment from Texas voters and from this Council to invest in working families,” said Council Member Alison Alter, who led the effort. “Our child care infrastructure is critical to keeping our economy functioning and ensuring the development and lifelong success of our children. This vote will bring critical relief to providers, but we must continue to work collaboratively to strengthen our child care ecosystem. I will have more exciting news on this front later in the year.”
To qualify, a child care facility must 1) be licensed, 2) participate in the Texas Rising Star Program, and 3) ensure at least 20 percent of children enrolled are subsidized by state funds. A person claiming this exemption must submit an application to their appraisal district by May 1.
“Every day, parents across our city face overwhelming barriers to child care access, especially in South and Southeast Austin. I’m thrilled to support this game-changing tax exemption, and look forward to seeing it bring much-needed relief to Austin’s working families,” said Council Member Vanessa Fuentes, one of the original co-sponsors of Alter’s November resolution.
“Working families are central to Austin’s success, both now and for the future,” said Council Member José Velásquez, another co-sponsor. “This Council is committed to making Austin a place for all to live, grow and thrive and I’m proud to support this action that will help more child care providers offer high quality, affordable options for hardworking families.”
Co-sponsor Ryan Alter expressed his support as well: “Child care costs are a significant burden for families and businesses alike. Providing a tax exemption to child care facilities will lower costs, increase accessibility, and help families live and thrive across Austin. I appreciate Council Member [A.] Alter’s leadership and look forward to continuing to explore ways to increase child care access for all.”
Alison Alter’s November resolution also directed the City Manager to identify relief options for home-based child care providers, which are not eligible under the state legislation. The resolution was approved unanimously, and gained additional co-sponsorship on the dais from Council Members Chito Vela, Leslie Pool, and Zohaib “Zo” Qadri. It was further supported by community partners including Early Greater Matter Austin, United Way for Greater Austin’s Success by 6 Coalition, Go Austin/Vamos Austin, the Austin LGBT Chamber of Commerce, the Greater Austin Asian Chamber of Commerce, and the Greater Austin Chapter and the Central South Region of the Texas Restaurant Association.
