MINOT—A closely watched resolution to grant temporary property tax exemptions for licensed childcare centers failed on a 3-3 vote Monday night, after more than an hour of passionate testimony and pointed debate. The proposal, brought back to the agenda by Alderman Paul Pitner, would have allowed exemptions through 2029 for eligible early childhood service providers, whether operated by nonprofits or for-profit businesses in commercial buildings.
Supporters of the measure, such as church leaders, childcare providers, and several council members, argued the exemption was a necessary step to preserve and expand a struggling industry that is vital to Minot’s workforce. Opponents expressed concern over shifting the tax burden to other property owners, particularly during a period of rising costs and ongoing infrastructure needs.
Pastor Steve Oster of Cornerstone Presbyterian Church led off the public hearing with an overview of his church’s charitable contributions to the community, including operating a preschool and daycare on a nonprofit basis. “We don’t do this for profit. We do this to serve our city because we love Minot,” he said.
Others echoed that message, with childcare provider Sarah Seay noting that 36 of 43 families enrolled at her center qualify for low-income assistance. She warned that a $15,000 tax bill could push centers like hers to raise rates or close altogether.
Council Member Pitner framed the four-year exemption as a measured compromise, likening it to existing tax incentives such as the Renaissance Zone. “This is a golden opportunity without overcommitting,” he said. “It allows us to test the waters and collect real data.”
City Assessor Ryan Kamrowski and City Attorney Stephanie Stalheim clarified that any exemption would apply only to the leased square footage used for childcare, and each application would be reviewed individually to determine eligibility under state law. Nonprofits currently hosting for-profit daycares could potentially retain their exempt status under charitable use provisions, pending documentation and review this summer.
Still, skepticism remained. Aldermen Mike Blessum, Scott Samuelson, and Rob Fuller voted against the resolution, citing fairness and fiscal impact. “We’re shifting the burden from for-profit daycare centers to every other property owner in Minot,” Blessum said, calling the proposal “a broad exemption that makes no sense.”
Fuller questioned whether tax breaks would actually translate to lower childcare costs. “Have those daycares come to us and said they’ll reduce prices or add slots? I haven’t heard that,” he said. “We need smarter solutions that don’t add pressure to the tax base.”
Pitner closed by reiterating that the resolution could incentivize expansion. “If this can help someone move from a home daycare to a commercial space and go from six kids to 40, that’s a win. That’s more parents in the workforce.”
The exemption, modeled on provisions already adopted in cities like Fargo, West Fargo, Jamestown, and Williston, would have waived property taxes on qualifying centers until 2029 or until the law is repealed. The city assessor’s office will continue its case-by-case review of current exemptions, with formal assessments expected by late summer.
Former Alderman and member of the Committee on Childcare, Scott Burlingame has been a vocal supporter of this proposal. Following the Council's 3-3 vote he issued this statement speaking on the decision: "It’s incredibly disappointing that the Council once again rejected a common-sense solution that’s already being used successfully in other North Dakota communities. This approach could have sent a strong message that Minot is serious about competing in the regional marketplace for workers by supporting access to childcare. Instead, it adds unnecessary burdens to providers already stretched thin. Despite this setback, many in our community remain committed to finding other ways to support families, providers, and employers in addressing Minot’s childcare needs. Hopefully in the future, the City Council will be more supportive."
