PROPOSITION 2
“The constitutional amendment 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.”
If voters approve this proposition, the owner of a property that’s used for a child-care facility in Texas will be eligible for some exemptions on county or city property taxes.
SUPPORTING VIEWPOINT
Methodist Healthcare Ministries
Methodist Healthcare Ministries supports Prop 2 along with four other propositions, because “they positively impact nonmedical drivers of health, improving the health of Texans and the patients we serve.”
The MHM website says Prop 2 would allow cities and counties to offer a property tax exemption for childcare providers as long as 20% of their students are getting subsidized child care services. The property tax exemption must be at least half of the appraised value, and does not apply to school district taxes or home-based providers who already have a homestead exemption.
OPPOSING VIEWPOINT
Andrew McVeigh
Executive Director
Texans for Fiscal Responsibility
Q: Why should the average Texan care about this proposition?
A: The first point is that Texans should care about the government getting involved in private industry and picking winners and losers. We do believe generally in a free market system. So the government is getting involved saying you get a childcare business, you get a tax exemption, but these other businesses or homeowners don’t get a similar exemption. We don’t think that’s a good policy. We think taxes should be generally equal across the board despite what type of business you’re engaging in.”
The second thing is that any time you give a proprietary tax exemption like this, it inevitably raises the property taxes on other Texans, other small businesses, but essentially homeowners. Because what happens is you give an exemption at the local level, county or city, but almost never do these local governments reduce these budgets, reduce their spending in order to account for the lost revenue. Which means the rate, the tax rate on other businesses and homeowners inevitably have to go up.
Q: Why does your organization oppose it?
A: I think the property tax burdens are already too high. Anytime you give one of these exemptions, property tax on other businesses and homeowners are going to go up.Unless you have the rare case where [the] local government is reducing their spending in order to account for lost revenue. We don’t think this is a good policy. Texans should vote no on proposition two to ensure that this type of exemption isn’t given.
– This Q&A was edited for clarity and length. Interview conducted by Melanie Reyes.
