Panel adopts amendment and refers bill to taxes to cut property taxes for in‑home family child‑care providers

A Minnesota House committee adopted the DE1 amendment to House File 633 and voted to re‑refer the bill to the Committee on Taxes. The bill, as amended, would convert the original proposed state-paid tax credit into a 50% market‑value exclusion on property taxes attributed to net capacity levies for in‑home family child‑care providers, Representative Nadeau said.

Representative Nadeau, the bill author, said the exclusion is aimed at stabilizing and incentivizing in‑home family child‑care providers. "The effect of this bill is a 50% exclusion on property taxes that are attributed to the net capacity levies. And this is only for in home family care providers," Nadeau said, describing the change from a state-funded credit to an exclusion that shifts some costs to local tax bases.

The bill comes amid testimony portraying steep child‑care costs and falling in‑home provider numbers. Grant Johnson, who said his wife operates a licensed in‑home program in Edina, told the committee that operating costs have risen sharply: "Our costs in utilities, insurance, taxes have skyrocketed in the…