How did Texas's child-care licensing agency describe an emergency shelter for purposes of the Comptroller's residential child-care vehicle exemption analysis?

Plain-English summary

The Texas Department of Protective and Regulatory Services sent this letter to the Comptroller to clarify child-care licensing terminology relevant to a motor vehicle tax exemption review.

Human Resources Code § 42.002 distinguished 24-hour child care from part-day or less-than-24-hour care. Although the statute did not define the phrase “residential child care facility,” the agency said it was generally understood—and used in Tax Code § 152.093—to mean a child-care facility licensed for 24-hour care.

An emergency shelter was expressly included as a type of child-care institution under § 42.002(4) and was a residential child-care facility licensed under Chapter 42.

The agency explained that an emergency shelter provided short-term emergency care and could serve children with no special needs, emotionally disturbed children, or children with other special needs, so long as the emergency care met their needs. It contrasted that with facility types specifically licensed to provide treatment for emotionally disturbed children.

The letter did not decide whether the shelter qualified for the motor vehicle tax exemption. It said the remaining issue was how the Comptroller would interpret § 152.093's requirement concerning 24-hour residential care for the specified groups of children.

What this means for you

Emergency shelters and residential child-care facilities

The document supplies historical licensing context, not a tax exemption determination.

Nonprofit accountants

Do not treat a Chapter 42 emergency-shelter license alone as this letter's approval of a vehicle exemption. A Comptroller tax analysis was still required.

Licensing professionals

The agency distinguished emergency-care licensing from facility categories specifically licensed to treat emotionally disturbed children.

Common questions

Q: Was an emergency shelter a residential child-care facility?

A: The licensing agency said yes for the historical Chapter 42 terminology.

Q: Could an emergency shelter care for emotionally disturbed children?

A: Yes, during emergency care if the care met the children's needs.

Q: Did this letter grant the motor vehicle tax exemption?

A: No. It left interpretation of § 152.093 to the Comptroller.

Citations and references

• Texas Human Resources Code § 42.002, including § 42.002(4)
• Tex. Tax Code § 152.093

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/9712075L

Original ruling text

TEXAS DEPARTMENT OF PROTECTIVE
AND REGULATORY SERVICES

EXECUTIVE DIRECTOR

BOARD MEMBERS

December 22, 1997

Joan Hale
Tax Policy Division
Comptroller of Public Accounts
State of Texas
Austin, Texas 78774

Dear Ms. Hale:

PRESIDENT, President of The CENTER, sent me copies of the correspondence
related to the motor vehicle tax exemption and asked me to clarify some of
TDPRS' terminology.

Chapter 42, Human Resources Code, Regulation of Child-care Facilities,
distinguishes, in the definitions (Sec. 42.002), between care for children 24
hours a day and part day care or care for less than 24 hours a day. There is no
definition in the statute of "residential child care facility," however this is
generally accepted, as indicated in the State Taxation Code, 152.093, as a
child care facility licensed to provide care 24 hours a day. An emergency
shelter (specifically mentioned as an example in the definition of "child-care
institution" in Chapter 42, 42.002(4)) is a residential child care facility
licensed under Chapter 42.

The real issue here, I think, now that I have a copy of the State Taxation Code
reference, is how your agency will interpret licensed to provide residential
care 24 hours a day to both children who do not require specialized treatment
and children who are emotionally disturbed. An emergency shelter is certainly
licensed to provide residential child care 24 hours a day. An emergency
shelter is licensed to provide short term emergency care and may provide such
care to children with no special needs, emotionally disturbed children, or
children with other special needs so long as emergency care provided meets the
needs of the children. The only types of facilities specifically licensed to
provide care for emotionally disturbed children are residential treatment
centers, therapeutic foster group homes, and therapeutic foster family homes. I
hope this clarifies our terminology. Please give me a call at (512) 438-3259
if you have question.

Sincerely,

Licensing Program Specialist