Hellmuth & Johnson attorney Brendan M. Kenny recently helped two Minnesota childcare-center clients obtain property-tax exemption relief through different paths: one through Minnesota Tax Court and the other through an assessor-level application, without an appeal.
These results show why childcare-center operators, owners, landlords, and advisors should examine exemption eligibility carefully. The appropriate path depends on the property’s use, ownership and leasing structure, procedural history, and other case-specific facts.
Minnesota’s Childcare Exemption
Minnesota law exempts certain qualifying educational institutions from property tax, including those meeting the “seminary of learning” standard under Minnesota Statutes, section 272.02. Whether an early-childhood education program qualifies depends on its educational mission, curriculum, operations, property use, and ownership structure. Brendan’s earlier article discusses the Under the Rainbow decision and the new exemption standard.
The analysis extends beyond a center’s license or name. Relevant facts include the program’s educational structure, instruction, lesson planning, assessment practices, and the property’s ownership and use. Qualification is not automatic, and a favorable result depends on the governing law, the facts, the applicable procedures, and timely action.
Tax Court Relief
In one recent matter, Brendan represented a Minnesota childcare center in Minnesota Tax Court. The parties’ resolution provided retroactive and prospective exemption relief, including correction or cancellation of affected property taxes and refund-related relief for eligible periods under the applicable stipulation and judgment.
An exemption dispute can involve more than one assessment year. When the law and procedural posture permit, an appeal may address both prior periods and future property-tax treatment. Brendan previously addressed the April 30 appeal deadline and the potential options for centers that did not first apply to the assessor.
Administrative Approval
A separate childcare-center client obtained exemption approval through the administrative process. With Brendan’s assistance, the county assessor approved the center’s exemption application for the 2026 assessment.
That result did not require a Tax Court appeal. It illustrates the value of developing a complete record at the assessor level, including materials explaining the facility’s educational program and the facts relevant to eligibility. When the record is complete and the application is effectively presented, administrative approval may offer the most efficient route.
Prompt Review Matters
Property-tax exemptions and appeals are time-sensitive. An early review can help determine whether an application, administrative follow-up, appeal, or other procedural option is appropriate.
The review should include organizational documents, leases, licensing materials, curriculum and lesson-planning records, policies, and evidence of property use. Ownership and leasing arrangements deserve particular attention where one party owns the property, and another operates the childcare center.
Practical Takeaway
A denial, omission, or uncertainty at the assessor level does not necessarily end the exemption analysis. Depending on the law, facts, timing, and procedural posture, a childcare center may have administrative or judicial options worth evaluating.
If you operate, own, lease to, or advise a Minnesota childcare center, contact Brendan M. Kenny to discuss potential exemption eligibility and available procedural options. Brendan can assess the relevant property use, organizational and lease structure, documentation, and timing considerations.
Brendan Kenny works extensively in administrative law, including regulatory compliance and enforcement matters affecting childcare centers. For questions about this or other matters affecting childcare centers, contact Mr. Kenny’s assistant, Angela Lund, at [email protected] or (952) 460‑9260.