Licensed, for-profit preschools and infant/toddler day care centers will receive property tax exemptions from the city under a bill passed Wednesday by the City Council.

Supporters of the bill call it a matter of fairness, pointing out that K-12 schools already are exempt from property tax, other than a $100 minimum tax.

Among those submitting testimony were officials from the Cole Academy and the Stepping Stones Academy, two for-profit day care and preschool businesses.

"This strained economy makes delivering early childhood education to families a difficult task," Stepping Stones said in written testimony. "This bill helps correct that situation by adding clarifying language, correctly extending the definition of 'schools' to include our community's youngest students."

Council Chairman Todd Apo, who introduced Bill 09-39, said he wanted to offer more incentive for people to start up preschools and child care centers, especially in the fast-growing West O'ahu region he represents.

City budget director Rix Maurer III said the city will lose out on about $200,000 to $300,000 annually in property tax revenues, depending on the size and neighborhoods of the campuses.

To qualify for the exemption, the business must be licensed as a preschool or infant/toddler center with the state Department of Human Services.

The city Department of Budget and Fiscal Services estimated that there are only about 20 for-profit preschools on O'ahu. There are many more nonprofit operations, as many as 300, and most receive exemptions because they are affiliated with churches, K-12 schools or other organizations, budget officials said.

Mayor Mufi Hannemann must still sign the bill for it to become law. He is expected to do so, since Maurer submitted testimony in support of the measure.