Clay County Commission

Dan Haglund

After the Clay County Board of Commissioners approved a two-year extension for the “Make Moorhead Home Property Tax Rebate” program on Nov. 12, it was approved for the whole county during a public hearing in its regular meeting on Tuesday in Moorhead.
The extension is for fiscal years 2025-26 and benefit other cities within the county as well.
For a home with an estimated market value of $300,000 upon completion, and is classified as a single-family homestead, the estimated annual rebate would be $3,671.13 after an annual tax payment of $4,278.71, resulting in a net tax after rebate of $607.58.
For homes not classified as single-family homesteads with the same market value, the estimated annual rebate would be $3,800.87 after the assessed tax payment of $4,412.25, resulting in a net tax of $611.38.
Positive feedback from outside of Moorhead was heard as well.
“This program has been vital to the City of Barnesville,” said Karen Lauer, Economic Development Director for Barnesville. “When this program originally started, the competition that Clay County was facing with Cass County (N.D.) in terms of residential development was significant. And I think over the period of years this program been in place, it has helped to level the playing field.”
Lauer also said that depending on different homeowner needs, there are advantages on both states.
“So this tool remains critically important,” Lauer said. “As (homeowners) weigh their various needs and amenities, this program really does float Clay County to the top.”
Lauer also made the point that coming out of a period of high interest rates and high construction costs, the attractiveness of building homes has become more challenging. Anecdotally, Lauer said only one new home was built in Barnesville this year, which is down significantly.
“So as I get the phone calls that are considering the possibility of building a new home,” Lauer said. “They ask about this program, they ask if it will be renewed.”
On another note, Lauer said a Fargo developer has shown interest in constructing a 28-unit apartment building within the city, which she said would provide a way for young families to “test drive” her city and its schools before deciding to build a new home there for permanent residency.
The “Make Moorhead Home Property Tax Rebate” was begun in 2012 after several flood events, and is based upon the assessed property value on Jan. 2 of each of the two years following the date a new home is completed.
Major floods in 1997, 2009-11 prompted the city and county to come up with solutions to foster building and population growth after a few flood-affected homes were removed.
The program was begun in 2009, and was initiated as a state-funded helping hand for this area to recover from floods.
According to Clay County Administrator Stephen Larson, the program has seen more than 1,500 homes have been built and have added $503 million in taxable values, generating more than $7 million in taxes paid annually.
“We heard the program is impacting different citizens’ willingness to build on the Minnesota side (of the Red River),” Larson said. “Dilworth has already taken action with its city council, and we would again reach out to the other cities looking at their interest to participate.”
Larson said the other cities would need to propose their resolutions to Clay County Auditor-Treasurer Lori Johnson by Dec. 31.
Commissioner Jenny Mongeau, Dist. 3, voiced her support for the two-year extension.
“I support a continuation of this. Anything that we can do to help continue offering some sort of program that helps offset the border challenge,” Mongeau said.