OLYMPIA — Legislation passed today by the Senate would help ensure the availability of childcare by broadening the B&O tax exemption allowed for childcare providers.
SB 6038 would extend the existing B&O exemption that applies to childcare providers for children up to age 8 to now apply to children up to age 12 or up to age 18 if the child has a verified special need or is under court supervision. The full exemption is already enjoyed by non-profit providers.
“This bill will help struggling childcare providers stay in business and continue to provide a service increasingly in demand in households across the state,” said Sen. Claire Wilson (D-Auburn), the bill’s sponsor. “This exemption could help a childcare provider stay in business instead of having to close their doors and reduce the availability of childcare.”
SB 6038 provides further relief by permanently eliminating requirements for childcare providers to pay for license fees, a temporary policy enacted during the pandemic that reduced the strain on providers.
“In recent years, we’ve found ways to help families afford childcare,” Wilson said. “This bill addresses the business side of childcare by offering a modest reduction in expenses that could make a critical difference for struggling childcare businesses.”
