Austin first Texas city to advance 100% property tax exemption for eligible child care providers

Austin is now the first city in Texas to advance a 100% property tax exemption for eligible child care operators in the city beginning in 2024.

The Austin City Council approved a resolution from Council Member Alison Alter (District 10) ensuring the 100% percent abatement just two days after Proposition 2 passed by 64.78%.

Prop 2 proposed a constitutional amendment enabling cities and counties to exempt all or part of a property's appraised value from taxation if the property is used as a child care facility. The exemption could be a percentage of the appraised value, but could not be less than 50%.

To qualify for the abatement in Austin, a child care facility must fulfill the following requirements:

  1. Be a licensed facility
  2. The owner/operator must participate in the Texas Workforce Commission’s Rising Star Program
  3. At least 20 percent of children enrolled must be subsidized by state child care funds

The resolution also directs the Interim City Manager to identify similar relief options for home-based childcare centers, which are primarily women-owned and are not eligible for tax relief under the state legislation. 

The resolution directs the City Manager to bring forth the necessary ordinance to finalize the tax exemptions on Jan. 18, the first Council meeting of 2024. 


The resolution was co-sponsored by Vanessa Fuentes (District 2), Jose Velásquez (District 3, Ryan Alter (District 5), Jose Vela (District 4), Leslie Pool (District 7), and Zo Qadri (District 9). 

The resolution was also supported by Early Matters Greater 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, the Greater Austin Chapter and the Central South Region of the Texas Restaurant Association, and other partners.