Governor Polis Signs Property Tax Waiver for Non-Profit Child Care Centers | Legislature

Gov. Jared Polis on Wednesday signed a bill to exempt nonprofit child care centers from paying property taxes in Colorado.

From August, House Bill 1006 Amends current legislation that allows property owned and operated by non-profit child care centers to be exempt from property tax. The bill removes the ownership requirement, adding to the tax exemption properties leased or leased for use as non-profit daycares.

The bill’s sponsors have championed it as a way to lower the price of child care by reducing the costs of running the centres.

“With these savings, we expect child care centers across the state to be able to lower prices, hire more staff, and create more child care openings for families,” said Rep. Dylan Roberts, D-Avon, who sponsored the bill. “Reducing taxes for child care simply makes sense, and I’m thrilled that my bill to that effect has been signed into law.”

In Colorado, the average family with two young children spends $28,600 — or 14% of their income — on child care each year, according to the federal government. Data. Single parents fare even worse, spending an average of 49.5% of their income on child care at Colorado centers, according to a Child Care Aware of America report.

Opponents of the bill have argued that offering tax relief to landlords who own the properties leased or leased by nonprofit daycares will not necessarily mean lower costs for the centers or for customers. They pointed out that owners are not required to pass on the savings.

Proponents said the tax exemption would also encourage landlords to rent to nonprofit daycares, potentially helping to ease the state’s childcare shortage.

“About half of Colorado is now considered a child care wilderness, which means there are three to four children for every child care slot,” said the bill’s sponsor, the Sen. Kerry Donovan, D-Vail. “This bill will hopefully increase the number of child care centers across the state.”

In 2019, Colorado child care providers only had the capacity to serve 62% of the state’s 246,000 children under age 6 whose parents are both working, according to a report. That meant a shortage of more than 90,000 child care spaces statewide, even before the COVID-19 pandemic shut down. about 7% Colorado licensed child care centers.

The state estimates that 56 existing child care centers across the state will be eligible for the property tax exemption under the bill, which will apply to nearly $40 million in total property value and exempt a little less than $3 million in property taxes per year.

The state Senate passed the bill in a 33-2 bipartisan vote last month, following the House’s 59-3 vote in April. In both houses, Republican lawmakers voted against the bill.

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