Adams County staff propose property‑tax rebate to shore up licensed childcare; board signals support for pilot

Adams County staff on Monday asked the Board of County Commissioners for direction on a property‑tax rebate program designed to stabilize and expand licensed childcare capacity in the county.

Staff said the proposal draws authority from a 2024 state law (referred to in the presentation as Senate Bill 24002) that allows local governments to rebate property taxes to support ‘‘areas of specific local concern.’’ Bill Aiken and budget staff described a structure that would rebate a portion of the Adams County general‑fund mill levy (Authority ID 058). Under the current staff recommendation every licensed childcare provider on taxable property would be eligible for a baseline rebate of 50% of the county general‑fund portion of property taxes; providers licensed to serve infants and toddlers would receive an additional 50% (for a total 100% rebate of the county general‑fund portion). Staff proposed a full 100% rebate for licensed home‑based providers because the average county share of taxes for a single‑family home is roughly $1,000 and staff said that amount would meaningfully lower operating costs.

Staff explained eligibility criteria intended to prevent loopholes: applicants must be on taxable property and licensed by the state, operate year‑round (with prorating for seasonal operators), have at least three non‑related children in care, have no outstanding land‑use violations and be current on property tax liabilities. Because state law requires the property owner to receive the rebate, staff developed an owner promissory guarantee to ensure landlords forward funds to operator tenants when the operator is not the owner.

The presentation included the county’s data on licensed facilities: of 344 licensed facilities in the county, 168 are on tax‑exempt property (schools, churches) leaving roughly 176 taxable facilities; Adams County’s portion of property taxes from that cohort is about $744,000. Staff estimated the program would cost roughly $698,000 if all eligible taxable providers applied and qualified; staff asked the board whether to cap the program at a total dollar amount or per‑applicant cap. The proposal includes an application window starting 07/01/2026 (after 2025 tax valuations) and a one‑year program term with annual reevaluation and readoption per statute.

Commissioners raised equity and design questions: several urged outreach and supports to encourage family‑friend‑neighbor (FFN) providers to become licensed, flagged the risk that landlords could raise rents if rebates simply flowed to owners, and asked staff to include administrative costs and data collection in the final fiscal estimate. Commissioners generally favored piloting the structure in year one, prioritizing infant/toddler care, and conducting a one‑year evaluation focused on retained/added licensed seats, applications received and the program’s fiscal impact.

Staff said they will return with the finalized program document and implementation materials, including a public application and marketing plan developed with municipal partners and community stakeholders. The board’s study‑session discussion produced direction to proceed toward a formal adoption hearing in early 2026, with annual review requirements and an emphasis on equity, outreach to unlicensed providers and safeguards to ensure rebates reach operators.