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CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 3/19/2024
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Item Creation Date:

FIN- Child-Care Facility Exemption - Chpt 44

Agenda Item#: 7.


 
                               
Summary:

ORDINANCE AMENDING CHAPTER 44 OF THE CODE OF ORDINANCES, HOUSTON, TEXAS, by adding new Section 44-30 to Article I relating to providing for a Tax Exemption for Tax Year 2024 and each year thereafter on qualifying Child-Care Facilities; containing findings and other provisions relating to the foregoing subject; providing for severability; containing a savings clause

Background:

Ordinance amending Chapter 44 of the Code of Ordinances to add a new property tax exemption equal to 100% of the appraised value of qualifying child-care facilities for Tax Year 2024 and each year thereafter.

 

Texas Proposition 2 was approved on November 7, 2023, and amended the Texas Constitution to allow the Legislature to authorize an exemption from taxation of at least 50% of the appraised value of qualifying child-care facilities. In the 88th legislative session, the Legislature passed and the Governor signed into law, Senate Bill 1145, which added a new section to Chapter 11 of the Tax Code and allowed the governing body of a municipality to exempt from ad valorem taxation all or part of, but not less than 50%, of the appraised value of real property a person owns and operates, or leases to a person who operates, as a qualifying child-care facility.

 

This Ordinance amends Chapter 44 of the Code of Ordinances by adding a new section 44-30 to adopt a property tax exemption for qualifying child-care facilities, as defined by Chapter 11 of the Tax Code. Accordingly, it is recommended that the City Council pass an ordinance that adds Section 44-30 to the Code of Ordinances and authorizes an exemption of 100% of the appraised value of qualifying child-care facilities starting with Tax Year 2024.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Melissa Dubowski, Chief Business Officer/Director of Finance

Prior Council Action:

 

 

 

 

 

 

 

 

Contact Information:

Alma Tamborello, Acting Deputy Director Phone: 832-393-9099

Josh Sanders, Director of Intergovernmental Affairs Phone: 832-393-0805

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