Texas Senate Bill SB489

Texas 2025 - 89th Regular

• Filed: 11/22/24

Caption

Relating to a requirement that a person provide or contribute to the cost of child care for the person's employees in order to be eligible to receive a limitation on the taxable value of the person's property for school district maintenance and operations ad valorem tax purposes.

Impact

The introduction of SB489 is poised to alter state law regarding tax incentives tied to property value limitations. By tying eligibility for these tax breaks to the provision of child care benefits, the bill seeks to encourage more businesses to support their employees directly, potentially increasing job satisfaction and retention. The law specifically pertains to agreements entered into after the effective date of the Act, which is set for September 1, 2025. Existing agreements entered prior to this date will not be affected, and the previous regulations will remain in force for those agreements.

Summary

Senate Bill 489 (SB489) aims to establish a requirement for employers seeking a limitation on the taxable value of their property for school district maintenance and operations ad valorem tax purposes. To be eligible for this tax benefit, employers must provide or contribute to the cost of child care for their employees. The bill requires that a child care benefit would need to be provided to all full-time employees either through an on-site licensed child care facility or by contributing a minimum of 50% of the employees' child care costs. This measure seeks to enhance support for families and help facilitate their participation in the workforce by alleviating child care expenses.

Contention

While supporters argue that SB489 will enhance workforce participation by addressing child care needs directly through employer involvement, concerns have been raised regarding the financial burden this could place on small businesses. Critics might argue that mandating such benefits could lead to increased operational costs, possibly hindering business growth or reducing employment opportunities in some sectors. Additionally, there are questions about the effectiveness of this bill in genuinely addressing child care accessibility issues, as employers may face challenges in implementing such benefits comprehensively.

Texas Constitutional Statutes Affected

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 612