• March 25, 2024

Weslaco daycares first in RGV to receive tax exemption

Weslaco daycares first in RGV to receive tax exemption

WESLACO, Texas— The City of Weslaco has been granted a tax exemption for its childcare facilities, providing a significant boost to eligible daycare businesses. Under this exemption, certain daycare enterprises qualify for a 50 percent reduction in taxes, though not all establishments meet the eligibility criteria. This exemption extends to any business renting its premises as a childcare facility.

During a press conference held on Wednesday, the city unveiled plans to support local childcare centers through SB-1145. This legislative measure shields licensed childcare facilities from tax hikes and aims to alleviate some of their financial burdens, particularly in light of the disappearance of pandemic-related assistance programs.

Statistics from Children At Risk, a Texas welfare organization, reveal a concerning trend, with the state losing 21 percent of its childcare providers between March 2020 and September 2021. Mayor Adrian González, speaking at the Weslaco City Hall’s Legislative Center, highlighted the potential impact of the new Texas bill, which grants tax exemptions to city childcare facilities.

Mayor González emphasized how these tax exemptions could benefit the community: “Daycares will be able to lower the price of childcare, or work together with families to be able to afford daycare services, enabling our citizens to participate in the workforce.”

Erik Orozco, co-owner of Miles of Smiles Learning Center, expressed optimism about the potential impact of these measures, noting that such support could prevent closures and sustain local businesses.

The city reports approximately 28 learning centers throughout Weslaco, with only 12 meeting the criteria for the tax break. To qualify, daycares must meet specific requirements, including state licensing, participation in the Texas Rising Star Program, and ensuring that at least 20 percent of enrolled children receive subsidies from state childcare funds.

It is mandated that the financial relief garnered by daycare owners be channeled towards reducing childcare fees for parents. The bill, effective as of January 1, 2024, aims to bolster the stability and accessibility of childcare services within the community.

Leave a Reply

Your email address will not be published. Required fields are marked *