Missouri Advances Tax Exemption Amendment

Missouri Advances Tax Exemption Amendment for Childcare Facilities to Alleviate Shortage

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Missouri is set to vote on a constitutional amendment that would grant childcare establishments exemption from property taxes, following its certification for the November 5, 2024, ballot.

Tax Exemption Amendment for Childcare Facilities
Tax Exemption Amendment for Childcare Facilities ( Photo: CNBC )

Missouri moves forward with childcare facility tax exemption amendment

The amendment received overwhelming support from the Missouri House of Representatives, passing with a 91-27 vote on May 12, 2023. It had previously gained unanimous approval from the Missouri State Senate on March 23, 2023. For a constitutional amendment to proceed to voter approval, it must receive a simple majority vote in both legislative chambers.

If passed, the amendment would authorize assessing authorities to provide tax exemptions for real and personal property primarily utilized for childcare services outside a child’s home. The proposal was put forward by Senator Travis Fitzwater, a Republican, who emphasized the need to address the shortage of childcare facilities in the state. He stated that the amendment aims to incentivize the expansion of childcare facilities by allowing them to retain more of their revenue, given their crucial role in meeting the childcare needs of Missouri residents.

Heidi Sutherland, the director of legislative affairs for the Missouri Chamber of Commerce and Industry, acknowledged that further action is necessary to tackle the childcare challenges in the state.

Heidi Sutherland noted that the proposed amendment could alleviate the childcare burden faced by workers

A survey conducted by the Chamber revealed that 78 percent of business leaders in Missouri identified the lack of available childcare as a significant obstacle in hiring and retaining employees, particularly single parents and women. Sutherland believes that the amendment is a positive step towards addressing this issue.

This ballot measure represents the first of its kind to be certified for Missouri’s 2024 elections. Over the years, Missouri has seen a total of 136 ballot measures on statewide ballots between 1985 and 2022, with a success rate of 63.23% (86 measures approved and 50 defeated). In the most recent elections held in 2022, Missouri voters approved three out of five ballot measures.

 

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