• Cities and counties are voting on property and sales tax increases to fund child care.
• Other localities have already implemented similar laws, with Alaska taxing marijuana sales to fund early childhood programs.
• We would like to hear your thoughts on the need to pay higher taxes to help fund child care in your community.

Cities and counties across the United States are finding ways to child care more affordable – and many are turning to taxes.

Three localities are voting to raise taxes to increase funding for child care for low-income and middle-class families.

Voters in Sonoma County, California, are deciding whether to impose a quarter-cent sales tax to fund child care and early childhood education, as well as resources for children without sheltered or mistreated.

Residents of Travis County, Texas — which includes Austin — will decide whether to raise property taxes by 2.5 cents to expand access to child care for low-income families.

A similar measure in St. Paul, Minnesota, would also increase property taxes to fund citywide child care initiatives for low-income families.

We want to hear from you. Would you pay – or are you already paying – higher taxes to make child care cheaper in your community? Fill this quick form.

Using tax revenue to fund child care is not a new idea. Local taxes already funds K-12 education in most states – a solution that works for public schools, but can leave early childhood education programs underfunded. Here’s what some cities, counties and states already require to fund child care.

Cities explore tax solutions to fund child care

Some cities have already tried to direct their tax revenue toward infant, toddler, and preschool-age care. In 2022, New Orleans voters supported a property tax increase to fund more than 1,000 child care spaces for low-income families. Because of the referendum, New Orleans Child Care Budget went from $3 million to $21 million per year for 20 years.

Whatcom County, Washington, also approved a property tax increase in 2022, which increased funding for 10 million dollars for child care and mental health of young families in the county’s annual budget. Other regions have adopted a sales tax approach, similar to Sonoma County’s ballot measure: Anchorage, Alaska, approved a 2023 sales tax on marijuana to fund early childhood programs.

Colorado has a policy that allows taxpayers who donate to qualifying child care and programs to claim an income tax credit equal to 50% of their contribution.

Certainly, local tax revenue cannot replace funding the entire American child care system. St. Paul Council Member Rebecca Noecker said local policies can complement broader state policies and federal funding pools.

Win or lose, Noecker said child care-related ballot measures raise awareness about access to child care.

“Now people in St. Paul are talking about child care like they never have before,” she said.