House Bill 115 creates a new property tax exclusion for qualifying child care facilities in North Carolina. It adds a new section to Chapter 105 of the General Statutes to classify the buildings, land they occupy, and nearby land reasonably necessary for their use as a special class of property that is excluded from taxation when the property is owned by a properly licensed child care facility and used in the operation of that facility.
The bill provides both total and partial exclusions. A facility used actually and exclusively for child care would receive a full exclusion, while property with mixed use could receive a partial exclusion for the portion used for a qualifying purpose. The bill also denies the exclusion during any period when the facility is on probation or has had its license suspended or revoked, and requires the Department of Health and Human Services to notify the Department of Revenue when that happens. The exclusion would apply through the normal property tax application process and would take effect for taxable years beginning on or after July 1, 2026.
Impact
HB115 would amend Chapter 105 of the North Carolina General Statutes by creating G.S. 105-278.6B, establishing a new property tax exemption/exclusion category for licensed child care facilities. It would reduce the property tax base for qualifying facilities, potentially lowering operating costs for child care providers that meet licensing and use requirements, while also tying tax benefits to compliance with state licensing standards. The bill affects county and local property tax administration, the Department of Revenue, and the Department of Health and Human Services through the notification and application process.
Sentiment
The available context shows no recorded committee debate or votes, so there is no documented opposition or support in the provided materials. Based on the bill’s structure, the measure appears aimed at helping child care providers by easing property tax burdens, while also preserving oversight by conditioning the benefit on proper licensure and good standing. The referral to Finance, Health, and Education committees suggests the bill touches both fiscal and child care policy concerns.
Contention
The main policy issue is whether child care facilities should receive a special property tax exclusion and how broadly that benefit should apply. Potential points of contention include the revenue impact on local governments, whether mixed-use properties should qualify for partial exclusions, and whether tying the benefit to licensing status is an appropriate enforcement mechanism. Another possible concern is administrative complexity, since the exclusion depends on coordination between the Department of Health and Human Services and the Department of Revenue.