Tax relief for child care facilities on Missouri ballots: What to know about Amendment 1
Next Tuesday, Missouri voters will decide whether they want to pave the way for property tax relief for day cares and preschools.
If passed, Amendment 1 would allow lawmakers to pass a bill to eliminate property taxes for child care facilities.
Known as SJR 26, the amendment was sponsored by Senate Republican Travis Fitzwater of eastern Missouri. In May 2023, it was approved to appear on the ballot with bipartisan support in the House and Senate.
This is one of two constitutional amendments on Missouri’s August ballot. The other, Amendment 4, could change the minimum funding requirement for the Kansas City Police Department.
Find information on candidates and how to vote in the primary election with the 2024 Kansas City Voter Guide at kcvoterguide.org.
How much would be lost in taxes if this question passes?
The full dollar amount of potential lost taxes from the constitutional amendment is unknown.
Some state and local agencies have shared estimates with the Missouri State Auditor’s Office, which asked organizations to estimate how much money they would lose from reduced tax dollars.
One Kansas City area county, Clay County, estimated its properties would owe $721,000 less in taxes in one year.
The Missouri Department of Social Services said their Blind Pension Fund — which gives money to people who are blind — would lose around $400,000 annually. This is approximately 1% of the annual dollars allotted to the fund. The pension, which is financed entirely by state funds, had a budget of $37 million for 2024.
In addition, officials with the Kansas City government and Metropolitan Community College said they would lose money, but they didn’t know how much.
Other agencies did not respond to the auditor’s office.
How many properties would be exempt from taxes?
Property taxes could be reduced or eliminated from hundreds of Missouri properties. The exact number would depend on the requirements lawmakers chose to set for a possible future bill.
As of July, Missouri has 1,700 licensed child care centers and 547 licensed child care businesses in homes, according to a report by the Missouri Department of Elementary and Secondary Education.
Home day cares would not be eligible for the exemption, The Star previously reported, but could potentially get a reduction in property taxes based on the portion of their home used for child care.
In addition, Missouri has 435 religious child care centers. These facilities are already exempt from property taxes and thus would not be affected.
Who supports the bill?
Pro-business and anti-abortion groups supported the amendment in the Missouri House and Senate hearings. Supporters argue that the ballot measure could entice business owners to offer child care services and encourage more facilities. No opponents appeared at these committee meetings.
The Star reached out to a number of professional groups for child care workers, who did not comment on the amendment’s impact. The Missouri Association for the Education of Young Children does not give policy endorsements, Cindy Imhauser, executive director, said in an email.
Do other states have similar exemptions?
Texas voters approved a similar amendment in November 2023, with 65% of voters supporting the legislation. Five months later, the Texas Tribune reported that at least eight counties and cities had allowed their residents to take advantage of the program, but awareness of the program was still limited.
What does my vote on Amendment 1 mean?
Voting “yes” would allow the Missouri House or Senate to pass a bill to eliminate property tax for child care facilities.
Voting “no” would leave the Missouri constitution as-is, and the legislature would not have the option to eliminate property taxes from child care facilities.
How will Amendment 1 appear on the ballot?
Shall the Missouri Constitution be amended to allow places where individuals, corporations, organizations, and associations provide childcare outside of the child’s home to be exempt from property tax? This is intended to make childcare more available, which would support the well-being of children, families, the workforce, and society as a whole.
State governmental entities estimate the state’s Blind Pension Fund could have annual lost revenue of up to $400,000. Local governments expect an unknown fiscal impact.
The Star’s Kacen Bayless contributed to this report.
Have more questions about elections in the Kansas City area? Ask the Service Journalism team at kcq@kcstar.com.
