Fort Worth joins other Texas cities, approves tax break for child care facilities

Fort Worth is following cities such as Dallas, Denton and Austin by giving a full property-tax break to qualifying child care centers.

The Fort Worth City Council on Tuesday approved the tax exemption that will be applied starting this year toward 100% of a facility’s appraised value. The council’s vote was unanimous, with council member Chris Nettles recusing himself as an owner and operator of a child care facility.

The ordinance came forward after Proposition 2 was passed by almost 65% of Texas voters in November, granting local governments the option to provide the tax relief to a sector that’s struggled financially, especially during the COVID-19 pandemic.

Felicia Davis, owner of Ready Set Jump learning centers in east Fort Worth, told council members during public comment that “child care programs are the backbone, as you know, of our local economy” that provide safe and nurturing environments for children while their parents work or go to school. Davis said she’d utilize the money saved through the tax relief to take her pre-K students on field trips to places such as farms, where children can see where their nutritional food comes from.

“We are forced to make difficult choices between keeping prices low so that our parents can afford our services, or raising tuition so that we can invest in the quality of our programs and pay our staff what they deserve,” Davis said. “This property tax relief will finally give us some breathing room. Most importantly, it will help quality-rated centers that serve low-income children stay open, so that they can continue providing much-needed child care services to the family.”

Qualifying child care facilities must be part of Texas Rising Star, the state’s quality rating and improvement system for early childhood programs, and also have at least 20% of its enrolled children receiving subsidized services through the Texas Workforce Commission. Under these requirements, there are 54 eligible child care programs in Fort Worth, out of about 338 total, that are able to utilize the exemption, according to Fort Worth officials. The city’s estimated revenue loss is $200,000 to the general fund; its general fund budget for the 2023 fiscal year is $915.3 million.

For the average child care provider, their savings would be more than $3,600, according to city estimates. Both property owners and child care directors that are renting their space would benefit financially, but operators of child care homes on a property that already claims a homestead exemption would be ineligible to have the child care exemption.

Carlanda Reeves, who operates child care home Carlanda’s Heavenly Care, also spoke during public comment and described operators like her as “overworked and underpaid.” She said she’d utilize the extra cash to provide transportation services to her families. Reeves was unaware that she’s unable to utilize the child care exemption on top of her homestead exemption until informed by the Star-Telegram after the council vote.

“It’s crucial that they provide the same benefits to home-based facilities,” She said. “We do the same thing but at a smaller level.”

Mayor Mattie Parker thanked the child care providers who attended the meeting and hoped the tax exemption would serve as a nod of appreciation for their work.

“It’s not easy to be a Texas Rising Star child care facility, that means you’re high quality and aspire to do that over and over again every single year, for that we’re incredibly grateful. Each of you are an integral part of the economic development of this community to make sure we have high-quality early childhood education for all kids across the city of Fort Worth.”