Childcare Facility Tax Exemption

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Overview

ChildcareOn October 28, 2024, the New Braunfels City Council approved Ordinance No. 2024-80, establishing an exemption from the assessment of the City’s ad valorem property tax for eligible childcare facilities pursuant to section 11.36 of the Texas Tax Code. This exemption has been codified in Chapter 122 – Taxation – of the Code of Ordinances. Childcare facilities in New Braunfels are eligible for an exemption from ad valorem property taxation of 100 percent (100%) of the appraised value of all or part of real property used to operate a childcare facility if:

  • It is licensed by the Health and Human Services Commission as a childcare facility;
  • The facility is a participant in the Texas Workforce Commission Texas Rising Star program;
  • At least 20 percent (20%) of the facility’s children are enrolled in the Texas Workforce Commission’s Child Care Services program;
  • Subject to specific exceptions stated in the ordinance, the facility is used exclusively to provide developmental and educational services; and
  • The property for which the exemption is sought is reasonably necessary for the operation of the child-care facility.

The completed application and all required documentation must be filed no later than April 30 of the year for which the exemption is requested. Additional information and the Form 50-844 application can be found on the Texas Comptroller's website.  

Please Note: The application and required documentation must be filed with the appraisal district in the county in which the childcare facility is located; applications will not be accepted at the City of New Braunfels.

For Comal County: Visit the Comal Appraisal District website.


For Guadalupe County: Visit the Guadalupe County Appraisal District website

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How is the City able to provide this childcare tax exemption?


S.B. 1145 passed during the Texas 88th Legislative session and prompted the statewide ballot of Proposition 2, Property Tax Exemption for Childcare Facilities. This measure was approved by voters to amend the State Constitution to allow counties or municipalities to authorize a property tax exemption on all or part of the appraised value of real property operating as a qualifying childcare facility.

This type of exemption is a local option exemption, meaning it is adopted and granted by local taxing entities at their discretion and each entity decides their amount, or percentage, to be provided as the exemption.