Some Dallas child care providers receiving tax relief this fall to expand access

Qualifying providers across dallas could receive property tax relief as early as this fall under a new state provision aimed at addressing child care deserts.

The area was among the first in Texas to provide the tax break at both the city and county levels after the council members and county commissioners recently passed the reduction in property taxes for child care providers beginning next year in their own jurisdictions.

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“It’s a game changer,” said Dee Chhabra, the owner of Spring Creek Private School, which serves about 140 students starting with infants through 13-years-olds.

High-quality early child care and education advocates have endorsed such proposals, pointing out that federal pandemic relief funds, which allowed some providers to keep their doors open, were expiring.

Chhabra said the relief could give him some wiggle room to increase teachers’ pay and keep costs low for parents at his centers, one of which is located in north Dallas.

“It’s tough to keep some of these good teachers because of such high [wages] that they’re able to get in some other areas outside of child care,” he said.

The tax-break proposal grew momentum after Texas voters in November approved Proposition 2, a state constitutional amendment that  allows counties and municipalities to waive property taxes by 50% to 100% for qualifying child care centers. To be eligible, such centers must have at least 20% of their enrollment made up of families that receive state-subsidized child care.

Across Texas, the cities of Denton, Austin and Houston, along with Bexar, El Paso, Harris, Hays, Travis and Aransas counties, have passed such proposals. Other cities and counties are considering the move.

To receive the tax relief as early as this year, providers must apply by the end of April to the Dallas Central Appraisal District. The form can be downloaded from the Texas Comptroller’s website.

Across Texas, several areas are considered child care deserts because they lack enough providers. Just under half of Texans live in such regions, according to the Center for American Progress.

In Dallas County, 11 out of the 93 ZIP codes are child care deserts, according to data from Children at Risk, a Houston-based research and advocacy nonprofit.

Child care providers struggle with staffing shortages, under-enrollment and increased operating costs, such as rent or high property insurance costs, a National Association for the Education of Young Children survey found earlier this year.

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Offering competitive pay to their employees is also a major challenge.

Advocates hope tax breaks will offer much needed relief to providers in the area, allowing them to funnel the money into other costs, remain open and continue supporting those in the workforce.

More than 60% of children in Dallas County under 6-years-old have both parents working, according to estimates from The Commit Partnership.

“Lack of child care is a major barrier to workforce participation for parents in our region,” Jarrad Toussant, senior vice president for workforce and education at the Dallas Regional Chamber, said in a statement. (The chamber is a supporter of the Education Lab.)

The exemption will help ensure “that high-quality early care and education remains in reach for our North Texas working parents,” he said.

The United Way of Metropolitan Dallas created a video to help child care providers navigate the application process.

The DMN Education Lab deepens the coverage and conversation about urgent education issues critical to the future of North Texas.

The DMN Education Lab is a community-funded journalism initiative, with support from Bobby and Lottye Lyle, Communities Foundation of Texas, The Dallas Foundation, Dallas Regional Chamber, Deedie Rose, Garrett and Cecilia Boone, The Meadows Foundation, The Murrell Foundation, Solutions Journalism Network, Southern Methodist University, Sydney Smith Hicks and the University of Texas at Dallas. The Dallas Morning News retains full editorial control of the Education Lab’s journalism.

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