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Statewide Amendment 02 - AGAINST

Texas

Statewide Amendment 02 - AGAINST

proposition

Texas Property Tax Exemption for Childcare Facilities Amendment

(SJR 64): Authorizing a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility. According to the House, while Texas reportedly lost a quarter of child care centers between March 2020 and Sept 2021 (likely due to Covid), the report doesn't say how many chaild-care businesses came back in. The US Chamber says Texas Texas' economy loses more than $9 billion every year due to inadequate child care.

House Analysis

 

Assertions

MCTP Position: Source

Submitted by john wertz on 2023-10-09 13:25:02

AGAINST

Carve out(Corporate Welfare).  If the demand is truly there, build it!!

 

 

Major Issues

Texas Scorecard has consolidated the recommendations for voting on the upcoming state constitutional amendments.October 7, 2023

 

More Corporate Welfare in the Texas Constitution - Huffines Liberty Foundation - AGAINST

 

Mark Ramsey 2023 Amendments Analysis - AGAINST

Democrat bill. Lobbyist bill. Raises your property tax to let someone else get theirs lowered. Subject to abuse. Little oversight.

 

JoAnn Fleming's "GRASSROOTS AMERICA We The People" '

"Voters, beware!  You are being used to grow government! Here’s how."

 

Current Revolt Position

One of the biggest ways lawmakers can exercise power and influence is to selectively exempt groups of people or entities from property taxes. This list of special exemptions grows larger every time lawmakers meet, serving as a kind of pressure relief valve for meaningful reform. This amendment is peculiar in that it leaves the door open for the legislature to change the definition of who this exemption applies to at any time without passing another amendment. Sounds legit, right? VERDICT: SKETCHY

 

MCRP Position

Ad valorem tax=property tax

This bill would provide county/city taxing entities the option to exempt in all or part any property used as an eligible day-care facility from property taxes.

According to Sen. Royce West (D-23) “The Texas child-care shortage is likely to have devastating effects on early childhood education, economic growth, and employment opportunities for parents. According to the U.S. Chamber of Commerce Foundation, Texas’ economy loses more than $9 billion every year due to inadequate child care. S.J.R. 64 seeks to address this issue by allowing the legislature, by general law, to exempt from property taxation all or part of the appraised value of real property used to operate a child-care facility.”

This bill will reduce property tax liabilities to facility owner/operators whether they lease or own the property. Property owners leasing to an eligible day care facility must reduce the rent to account for the reduction in property tax. This could allow the facility to hire more workers, pay a higher wage, or reduce costs to customers.

On the other hand, this law grants an exemption to a particular business type with no guarantees the savings will be passed to the consumer or used to improve services. This amendment was SJR 64 in the regular legislative session.

Recommendation: None. Voters must decide if the pros outweigh the cons.

Information Source: Ballotpedia, Texas Proposition 2, Property Tax Exemption for Childcare Facilities Amendment (2023) - Ballotpedia