North Carolina exempts qualifying child care facilities from property taxes

Original title: Child Care Facility Tax Exemption.

Last action · February 13, 2025: Ref to the Com on Finance, if favorable, Health, if favorable, Education - K-12, if favorable, Rules, Calendar, and Operations of the House (House action)Sponsors: Bryan Cohn and 19 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

Track this bill to get notified when it advances a stage. One tap to stop, anytime.

What This Bill Would Do

North Carolina exempts properly licensed child care facilities from property taxes starting July 1, 2026. Facilities currently on probation or with suspended or revoked licenses are barred from receiving the tax exclusion.

Why it matters

Lowers operating overhead for licensed child care providers by removing property tax liabilities on facility buildings and necessary adjacent land, starting in the 2026 taxable year.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

qualifying child care facility

Qualifying child care facilities become eligible for total or partial property tax exclusions on their buildings and necessary land.

Directly affected

Department of Health and Human Services

The Department must notify the Department of Revenue if any child care facility is placed on probation or has its license suspended or revoked.

Directly affected

Department of Revenue

The Department receives notifications regarding facility probationary status or license suspensions that disqualify them from tax exclusions.

Key Facts

Qualifying child care facilities are designated a special class of property under Section 2(2) of Article V of the North Carolina Constitution and excluded from taxation.
A qualifying child care facility is defined as a properly licensed child care facility operating with a current license under Article 7 of Chapter 110 of the General Statutes.
Facilities that are actually and exclusively used to provide child care qualify for a total tax exclusion on buildings, occupied land, and adjacent land reasonably necessary for use.
If part of a qualifying facility is used for a purpose that would otherwise qualify for exemption, the valuation of that specific part shall be exempted from taxation.

Show all 8 facts

Child care facilities placed on probation or having their licenses suspended or revoked by the Secretary of the Department of Health and Human Services are prohibited from receiving the tax exclusion.
The Department of Health and Human Services must notify the Department of Revenue if a facility's license is suspended, revoked, or placed on probation.
Application requirements of G.S. 105-282.1 apply to the tax exclusion.
The act applies to taxes imposed for taxable years beginning on or after July 1, 2026.

Frequently Asked Questions

Which child care facilities qualify for the property tax exemption?

Any child care facility that is properly licensed and operating with a current license in accordance with Article 7 of Chapter 110 of the General Statutes qualifies.

What happens if a child care facility is placed on probation by the state?

The facility is prohibited from receiving the property tax exclusion during any period in which it is placed on probation or has its license suspended or revoked.

When does the property tax exemption take effect?

The exemption is effective for taxes imposed for taxable years beginning on or after July 1, 2026.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Follow the record

Votes, people, money & the original source

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

3 actions

Feb 13, 2025House
Ref to the Com on Finance, if favorable, Health, if favorable, Education - K-12, if favorable, Rules, Calendar, and Operations of the House
Feb 13, 2025House
Passed 1st Reading
Feb 12, 2025HouseIntroduced
Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →