Legislation Details

File #: 24-1725    Name: Ord - Property Tax Exemption for Qualifying Child-care Facilities
Type: Ordinance Status: Approved
In control: City Council Special Meeting
On agenda: 6/25/2024 Final action: 6/25/2024
Title: Consider/Discuss/Act on an Ordinance Adopting a Property Tax Exemption for Qualifying Child-care Facilities, as Authorized under Texas Tax Code Section 11.36 and Article VIII, Section 1-R of the Texas Constitution
Attachments: 1. Ordinance

Title

Consider/Discuss/Act on an Ordinance Adopting a Property Tax Exemption for Qualifying Child-care Facilities, as Authorized under Texas Tax Code Section 11.36 and Article VIII, Section 1-R of the Texas Constitution

 

Summary

COUNCIL GOAL:   Financially Sound Government

(4A: Provide Funding and Organizational Framework to Ensure Continual Economic Improvements)

 

MEETING DATE:                     June 25, 2024

 

DEPARTMENT:                      Budget

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

 

RECOMMENDED CITY COUNCIL ACTION:

  • Approve the ordinance.
  •  
  • ITEM SUMMARY:
  • This agenda item is for the adoption of an ordinance that would provide qualifying childcare facilities a property tax exemption
  • The exemption applies to a percentage (not less than 50% and up to 100%) of the property’s appraised value
  • Percentage of exemption is determined by the City Council
  •  
  • BACKGROUND INFORMATION:
  • At the June 18th work session staff presented information to City Council regarding the option for the City to adopt a property tax exemption for qualifying child-care facilities.
  • The county appraisal district must receive notice of adoption from the City before July 1 in order for the increase to be effective October 1 for 2024 taxes.
  •  
  • FINANCIAL SUMMARY:                      
  • It is estimated that four childcare facilities in the City of McKinney potentially meet the criteria to be eligible for this exemption
  • Based on 2023 Tax Year values the total taxable value of the four properties is about $4.3M.
  • This equates to an estimated $19K in tax levy being redistributed