FORT WORTH (1080 KRLD)- The Fort Worth City Council approved a plan Tuesday night to provide a property tax cut to some childcare facilities. In 2023, voters in Texas approved an amendment giving cities and counties the option of reducing property taxes for some childcare centers.
Centers must be non-profit. At least 20% of kids must qualify for subsidized care, and the centers must participate in the "Texas Rising Star" program. The program provides certification to childcare centers that meet quality standards.
Fort Worth could approved a property tax break of 100% to centers that qualify.
"They might pass it through in less electric bill burden or pay their teachers a dollar or two more per hour, but it's not the type of industry you get in to make a lot of money, unfortunately," Mayor Mattie Parker said.
Christianne Simmons was named Fort Worth's "chief transformation officer" last year. At the same meeting, she told the council Fort Worth has 338 childcare centers, including those that operate out of homes. She said just 54 would meet all criteria for the tax break.
Simmons said at the 100% exemption level, the average childcare center would save $3,641 on property tax.
Mayor Mattie Parker said the city would lose about $200,000 in revenue from a budget that totalled $2.6 billion this fiscal year.
"This is a very small, incremental change in the State of Texas," Mayor Mattie Parker said at a City Council meeting last month. "The business model looks like it is incredibly broken. The ones that won't qualify are the for-profit providers."
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