Tax Aids and Credits

Other Local Government Payments - Border City Reimbursement

Statewide Outcome(s):

Border City Reimbursement 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 Border City Reimbursement reduces property tax burden for commercial/industrial, public utility and apartment property. The reimbursement provides additional property tax relief to the eligible border cities of Breckenridge, Dilworth, East Grand Forks, and Moorhead.

Payments to businesses are at the discretion of cities.

Results:

Benefiting business property taxes are lower due to the program.

Cities are not required to demonstrate need when requesting state reimbursement.

Performance Measures Notes:

Number of cities receiving reimbursement compares payable year 2009 (previous) to 2011 (current).