Tax Aids and Credits

Credits - Disparity Reduction Credit

Statewide Outcome(s):

Disparity Reduction Credit supports the following statewide outcome(s).

A thriving economy that encourages business growth and employment opportunities.

Context:

Property taxes tend to be lower in North Dakota, putting some Minnesota businesses in bordering communities at a competitive disadvantage. Property tax refunds, credits and reimbursements exist in various forms to reduce property tax burdens on homeowners and/or businesses.

Funding Source: State General Fund.

Strategies:

Provide property tax relief for businesses in certain border cities.

The Disparity Reduction Credit reduces property tax burden for commercial/industrial, public utility and apartment property to 2.3 percent of taxable market value. Eligibility requirements for receiving the credit are defined in statute. The credit provides property tax relief to the border cities of Breckenridge, Dilworth, East Grand Forks, and Moorhead.

Results:

Benefiting business property taxes are lower due to the program.

Performance Measures Notes:

Approximately 1,300 parcels receive the credit annually.

Average credit amount compares payable year 2011 (previous) to 2012 (current).