Primary Department: County Judge
Primary Department Head/Elected Official: Lina Hidalgo
Secondary Department: N/A
Secondary Department Head/Elected Official: N/A
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
title
Request for discussion and possible action to reauthorize an exemption from Harris County ad valorem taxation of 100 percent of the appraised value of real property used to operate a child care facility, as defined in the Texas Tax Code, and amend related policies.
end
Background and Discussion:
During the 88th Legislative Session, the Texas Legislature passed Senate Bill (SB) 1145 and Senate Joint Resolution (SJR) 64 to amend Article VIII of the Texas Constitution to allow cities and counties the option to provide an exemption from ad valorem property taxation between 50 to 100 percent of the appraised value of all or a part of real property used to operate a child care facility, contingent on voter approval. On November 7, 2023, 64.8 percent of Texas voters approved the constitutional amendment (Proposition 2), which paved the way for SB 1145 and SJR 64 to officially become law on January 1, 2024. To be eligible for property tax exemptions, child care providers must participate in the Texas Workforce Commission’s Texas Rising Star Program and maintain a minimum 20 percent enrollment of children receiving subsidized services through the Texas Workforce Commission, among other criteria outlined in SB 1145. This exemption only applies to Harris County property taxes and is not applicable to the taxes for Harris County Flood Control District, Harris County Hospital District, or the Port of Houston Authority.
Expected Impact:
Since March 26, 2024, 124 child care facilities in Harris County have received this exemption.
Alternative Options:
Should the County not reauthorize the exemption for the 2026 tax year and each year thereafter, eligible child care centers could lose critical financial assistance provided by Proposition 2.
County Strategic Plan Goal: 3. Make our economy more inclusive.
County Strategic Plan Objective: K: Provide workers with training and other supports (e.g. child care) to participate fully in the local economy.
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): K1: Advance child care quality and accessibility through workforce development programming and child care slots.
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan: N/A
Prior Court Action (if any):
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3/26/2024 |
4 & 549 |
Approved to create an exemption from Harris County ad valorem taxation of 100 percent of the appraised value of real property used to operate a child care facility. |
Location:
Address (if applicable): N/A
Precinct(s): Countywide
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Anticipated Court Date: 12/11/2025
Anticipated Implementation Date (if different from Court date): 1/1/2026
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department: Amy Zhan, Chief of Policy, County Judge’s Office
Attachments (if applicable): Policy