Cherry County commissioners keep churches tax-exempt despite for-profit daycares
Cherry County commissioners voted to keep churches tax-exempt this week even though portions of their buildings are being used by for-profit daycare providers, siding with church leaders who say they are helping meet a critical childcare need in the community.
VALENTINE, Neb. — Cherry County commissioners voted to keep churches tax-exempt this week even though portions of their buildings are being used by for-profit daycare providers, siding with church leaders who say they are helping meet a critical childcare need in the community.
The decision follows debate sparked by a determination from the county’s newly appointed assessor that the churches should be taxed for the areas of their buildings used by the businesses.
The issue stems from Valentine’s ongoing childcare shortage. Community leaders partnered to open two daycare facilities inside local churches in an effort to create more childcare spots.
“We knew we had a daycare need,” said Jill Joseph-Austin, executive director of the Valentine Children and Families Coalition. “Our shortage for children was at about 60. We needed about 60 spots, but a facility in a grander fashion was too much for our community. It was not going to be sustainable.”
The city, county and a church spent thousands of dollars helping bring parts of two church buildings up to code so daycare providers could operate there. But after the facilities opened, Cherry County Assessor Melissa Bancroft determined that state law requires taxation.
“The property must not be used for financial gain or profit to either the owner or user,” Bancroft said.
Leaders from the two churches argued they are not profiting from the daycare operations. One church rents space to the provider for $1 a year, while the other charges $300 a month but pays all of the utilities.
“You’re getting your toe into a door that I really don’t want you in. I also truly believe that we’re doing this not to make money,” said Carol Leonard with the Presbyterian Church.
After discussion, the Cherry County Board of Commissioners unanimously voted to keep the properties tax-exempt. The county attorney advised commissioners that the law should be interpreted more broadly and that the churches could retain their exemption.
“I want to see this project happen. If I didn’t want to, I wouldn’t have given the $50,000 that this board agreed to do,” said county commissioner Martin DeNaeyer.
“I agree that this is for the benefit of the community, and it’s very much needed in the community,” said county commissioner Nina Nelson said.
Commissioners acknowledged the state could potentially challenge their decision, but said the need for childcare outweighs the risk.
“I do believe that 95% of our workforce is probably in need of childcare in this town, and I think that outweighs anything,” said commissioner Mike McConaughey. “Maybe by us pushing the limits, we can bring it someone’s attention that this needs to be changed.”