Minnesota Tax Court exempts Mother Duck Learning Center from property taxes
Mother Duck Learning Center vs. County of Hennepin Court File No.: 27-CV-24-5464. State of Minnesota Tax Court.
On October 8, 2025, the Minnesota Tax Court granted summary judgment to Farhad and Michele Moin and Moin Incorporated, holding their Mother Duck Learning Center qualifies as a tax-exempt seminary of learning for assessment as of January 2, 2023, in Hennepin County.
The court found concurrence of ownership and use because the same individuals who own the real estate also control and operate the licensed childcare center through their corporation.
Why It Matters
The decision applies Minnesota’s seminary of learning exemption to a privately owned childcare center that meets the state’s educational criteria and confirms that natural persons can satisfy the concurrence rule when they own the property and operate the school through a closely held corporation. Counties evaluating exemptions for licensed early education providers now have a recent roadmap on ownership and use.
Key Facts
Parties
Petitioners: Farhad Moin, Michele Moin, and Moin Incorporated, all doing business as Mother Duck Learning Center.
Respondent: County of Hennepin.Property
Two parcels at 6301 and 6341 Penn Avenue South, Richfield, Minnesota, PIDs 28-028-24-22-0118 and 28-028-24-22-0012.
Three buildings used as childcare facilities, playgrounds, and parking lots.Ownership and operation
Farhad and Michele Moin own both parcels in joint tenancy.
Moin Incorporated operates the childcare center on the property and does business under the assumed name Mother Duck Learning Center.
The Moins are the sole shareholders, officers, and directors of Moin Incorporated and have always controlled all aspects of the corporation’s operations.Licensure and use
The property is used only as a licensed childcare center.
DHS licenses: 807028 and 1064787 under Minn. R. ch. 9503.
As of January 2, 2023, Moin Incorporated’s only operations were operating the subject property as childcare center facilities.Employment and income
As of January 2, 2023, both Farhad and Michele Moin were employed at Moin Incorporated and not elsewhere.
The owners receive rent from Moin Incorporated.
Moin Incorporated has elected S corporation status and passes income through to the owners via Schedule K-1 in accordance with 26 C.F.R. § 301.7701-3(c)(1)(V)(C).Educational status
The parties stipulated that Mother Duck Learning Center meets the three educational criteria for a seminary of learning under Under the Rainbow Early Educ. Ctr. v. County of Goodhue, 978 N.W.2d 893 (Minn. 2022).
Timeline
April 30, 1990: Assumed name Mother Duck Learning Center filed.
May 7, 1990: Moin Incorporated organized in Minnesota.
1999 and 2008: Moins acquire 6341 and 6301 Penn Avenue South, respectively.
January 2, 2023: Assessment date for taxes payable in 2024 and operative facts for ownership, employment, and use.
April 9, 2024: Petition filed challenging the 2023 assessment.
June 10, 2025: Cross-motions for summary judgment filed with stipulated facts.
October 8, 2025: Court grants petitioners’ motion and denies the County’s motion.
Court Findings
Mother Duck Learning Center is a seminary of learning under Under the Rainbow because it is educational in nature, reduces the burden on public schools, and its education is readily assimilated into the public school system.
Concurrence of ownership and use is satisfied where Farhad and Michele Moin own the real estate and also operate the seminary of learning through Moin Incorporated, which they wholly own and control.
Minnesota precedent allows courts to look past technical corporate form to identify the real owner and user for exemption purposes when the same controlling persons own and operate the property for the exempt purpose.
The Constitution and statute provide a less strict construction for educational exemptions relative to other exemptions.
Institutional ownership is not required for seminaries of learning. Natural persons can own and operate a qualifying school.
Judgment Details
Relief granted: Petitioners’ motion for summary judgment granted.
Exemption: The subject property is exempt from property tax as a seminary of learning as of January 2, 2023, for taxes payable in 2024.
Relief denied: Hennepin County’s motion for summary judgment denied.
Finality: This is a final order. Judgment to be entered accordingly.
Outcome
The court entered judgment for petitioners, exempting the two Richfield parcels used exclusively by Mother Duck Learning Center from property taxes as of the 2023 assessment date.
The Takeaway
Licensed childcare centers that meet Under the Rainbow’s educational criteria can qualify as seminaries of learning. When the same individuals own the property and control the operating entity, Minnesota’s concurrence of ownership and use requirement can be met without corporate ownership of the real estate.
List of citations
Minn. Const. art. X, § 1
Cited for constitutional authority exempting seminaries of learning and the directive for less strict construction of educational exemptions.Minn. Stat. § 272.02, subd. 5 (2024)
Cited for statutory exemption of seminaries of learning.Minn. Stat. § 272.02, subd. 35 (2024)
Cited to show legislative willingness to treat single-member entities as the member for ownership or operation in exemption analysis.Minn. R. ch. 9503 (2025)
Cited for DHS licensing rules governing childcare centers, relevant to the property’s licensed use.26 C.F.R. § 301.7701-3(c)(1)(V)(C) (2024)
Cited for S corporation pass-through treatment establishing how Moin Incorporated’s income reaches the owners.Under the Rainbow Early Educ. Ctr. v. Cnty. of Goodhue, 978 N.W.2d 893 (Minn. 2022)
Cited as controlling authority that licensed childcare centers can be seminaries of learning and for the three-part educational test.HealthEast v. Cnty. of Ramsey, 749 N.W.2d 15 (Minn. 2008)
Cited for concurrence of ownership and use and the court’s ability to disregard separate corporate status in limited circumstances.Christian Bus. Men’s Comm. of Minneapolis, Inc. v. State, 38 N.W.2d 803 (Minn. 1949)
Cited for the general rule requiring concurrence of ownership and use for exemption.All. Hous. Inc. v. Cnty. of Hennepin, 4 N.W.3d 355 (Minn. 2024)
Cited for contemporaneous exemption principles where use by non-owners can still qualify under charitable housing context.TKA Invs. L.L.C. v. Cnty. of Olmsted, Nos. 55-CV-23-2754 & 55-CV-23-2757, 2025 WL 2405933 (Minn. T.C. Aug. 19, 2025)
Cited for applying § 272.02, subd. 35 and recognizing seminaries of learning owned and operated by a person through entities.State v. Nw. Vocational Inst., 45 N.W.2d 653 (Minn. 1951)
Cited for the policy of encouraging private educational institutions through tax exemptions.State v. Nw. Preparatory Sch., 83 N.W.2d 242 (Minn. 1957)
Cited for traditional scope of seminaries of learning and general education context.Cmty. Hosp. Linen Servs., Inc. v. Comm’r of Tax’n, 245 N.W.2d 190 (Minn. 1976)
Cited for disregarding separate legal title when a tax-exempt organization owns or controls the property used for exempt purposes.Nelson v. Stryker Seminary, 53 N.W. 1133 (Minn. 1893)
Cited to confirm that individual ownership of a seminary can still qualify for exemption.Humana MarketPoint, Inc. v. Comm’r of Revenue, No. 9570-R, 2024 WL 4997432 (Minn. T.C. Nov. 21, 2024), aff’d, No. A25-0058, 2025 WL 2713862 (Minn. Sept. 24, 2025)
Cited for summary judgment standards applied by the Tax Court and affirmed by the supreme court.Am. Fam. Mut. Ins. Co. v. Thiem, 503 N.W.2d 789 (Minn. 1993)
Cited for resolving legal issues on cross-motions for summary judgment based on the record.In re Bush’s Est., 224 N.W.2d 489 (Minn. 1974)
Cited for general summary judgment principles in Minnesota.Milwaukee Motor Transp. Co. v. Comm’r of Tax’n, 193 N.W.2d 605 (Minn. 1971)
Cited for the caution against disregarding corporate form in tax contexts and the court’s analysis distinguishing potential abuse from the facts here.