These Colorado counties have very different politics. Both now offer tax relief to childcare providers.

“Sign up for Chalkbeat Colorado’s free daily newsletter to get the latest reporting from us, plus curated news from other Colorado outlets, delivered to your inbox. Two Colorado counties on opposite sides of the political spectrum are the first to use a recent state law to provide property tax relief to childcare businesses, in an effort to help stabilize the industry. Adams County commissioners, who are all Democrats, and Douglas County commissioners, who are all Republicans, approved their respective property tax rebate plans this spring. The initiatives, which give extra incentives to childcare providers serving infants and toddlers, will send hundreds of dollars to the smallest providers and thousands to the largest ones starting in the second half of 2026. Lisa Jansen Thompson, who leads the Early Childhood Partnership of Adams County, likened the rebates to one piece in a 1,000-piece jigsaw puzzle. “Every little piece helps,” she said “And the more that we’re able to put together pieces, the closer we get to making childcare affordable for families as well as for providers, and making sure there’s enough.” The new property tax rebate programs are the latest example of efforts by local governments around Colorado to offer financial help to childcare providers, and in turn support the families they serve. In the last few years, voters in more than a dozen cities or counties, including Larimer County and several mountain resort communities, have approved sales or lodging taxes that generate funding for childcare. Such efforts have expanded as childcare providers face increasing financial headwinds: the end of COVID stimulus money, rising costs, and enrollment drops caused by freezes on childcare aid for low-income families. Divine Klutsey, president and CEO of Purple Moon Early Learning Center in Northglenn, said he and his wife have considered closing their center, which enrolls about 80 children, because of barely-there profit margins. One Friday this spring, he was on the phone with a plumber whose visit to fix a leaking sink was going to cost $300. “There’s always something that is not working well,” he said. This year, Purple Moon’s property tax bill is $36,000, Klutsey said. Typically, he takes out a high-interest loan to pay the bill, and then makes weekly payments. “I am still paying the one from last year,” he said. Klutsey doesn’t know exactly how big of a rebate he’ll get back through Adams County’s new program, but said if it covered half his county property taxes it would be a relief. “Then I don’t have to close the business a year or two down the road,” he said. The rebate programs in Adams and Douglas counties are possible because of a 2024 state law that allowed counties to offer tax credits or rebates to address local challenges such as housing, childcare, job training, or renewable energy. Only childcare businesses that pay property taxes or who rent from landlords that pay property taxes are eligible for the rebates. Childcare programs in public schools and churches aren’t eligible because those institutions don’t typically pay property taxes. Diane Smith, executive director of the Douglas County Early Childhood Council, said private providers tell her the rebates will help level the playing field by cutting some of the overhead costs that other childcare programs don’t have. Adams and Douglas counties will offer 100% rebates on county property taxes for two categories of providers: home-based programs and those that have infant and toddler spots. Providers outside of those two categories will get 50% rebates in Adams County and 75% rebates in Douglas County. About 167 providers in Douglas County and 176 providers in Adams County will be eligible for the rebates directly, or through their landlords. Both counties will offer the rebates for one year and county commissioners will consider renewing them next year. Julie Duran Mullica, vice chair of the Adams County Board of Commissioners, said approving the rebates was an easy decision for the five-member board even though it could mean a loss of $700,000 in property tax dollars. “You budget what you value,” she said. “We know how much of a struggle [childcare] is in Adams County.” At the end of the pilot year, Duran Mullica said she’ll want to see data on how many childcare closures the rebates helped and how many seats providers added. Mark Arbitrio, who owns Ivybrook Academy in Castle Rock and paid about $20,000 in property taxes last year, said he’ll use a portion of the rebate he hopes to receive to subdivide one of his four classrooms, so that a portion of the space can be used for a new toddler classroom. That room will create around 18 new half-day toddler spots. Some of the rebate could also go toward retention bonuses for teachers. “They are the glue to everything that we do,” Arbitrio said. “I mean, I love our curriculum, our school’s beautiful and all that, but they are the glue, right?” Ann Schimke is a senior reporter at Chalkbeat. Contact Ann at aschimke@chalkbeat.org .

Summary generated from the RSS feed of Chalkbeat Tennessee. All article rights belong to the original publisher. Click through to read the full piece on www.chalkbeat.org/tennessee.