Missouri voters will decide whether to give tax breaks to child care providers at the Aug. 6 primary elections.
Amendment 1 to the state constitution would allow the General Assembly to pass tax exemptions for real and personal property “used primarily for the care of a child outside of his or her home,” according to Gov. Mike Parson’s official website.
Lawmakers are hoping the tax exemptions will alleviate statewide childcare shortage concerns by incentivizing more people to open care centers.
According to a 2023 investigation from the Missouri Independent and MuckRock, almost half of all Missouri children under 5 years old, or about 202,000 children, live in an area with little to no available childcare.
The U.S. Chamber of Commerce reports that 16,000 child care centers have closed nationwide since the beginning of the COVID-19 pandemic, with even more operating at limited capacity.
The financial impact of the tax exemptions on local governments is largely unknown, according to the Kansas City affiliate of National Public Radio, with the state’s Blind Pension Fund reporting it could lose an estimated $400,000 a year in funding due to the tax breaks.
The official ballot language reads: “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.”
