Morehead extends property tax rebate program to support new home construction

The City of Moorhead is set to continue its successful Make Moorhead Home property tax rebate program, which has been in place since February 2009. This initiative aims to incentivize the construction of new homes and expand the city’s property tax base by allowing homeowners to receive a rebate on their property taxes for the first two years after their home is built. The program is supported by the school district, county, and city, all of which forgo tax revenue during this period.

During the recent Economic Development Authority meeting, officials highlighted the program's effectiveness, noting that it has contributed to significant growth in Moorhead. In 2024, the city approved rebates for 94 homes completed in 2021 and 93 homes from 2022, adding over $61 million in value to the community. The total cost of these rebates was approximately $888,000, which officials believe is a worthwhile investment considering the long-term tax revenue generated once the rebates expire.

The program is structured as a full-value rebate, unlike similar initiatives in neighboring Fargo and West Fargo, which only refund a portion of the home’s value. This comprehensive approach has made Moorhead's program particularly attractive for both affordable starter homes and luxury residences.

In addition to the property tax rebate, the meeting also discussed a new development project at the corner of 14th and Main. RFI 2 LLC plans to replace a former convenience store and two residential structures with a new 28-unit apartment building. This project aims to cater to a diverse demographic, including college students and young professionals, and will feature a mix of one, two, and three-bedroom units, along with ample parking facilities.

The Economic Development Authority expressed strong support for both the rebate program and the new apartment development, emphasizing their commitment to fostering growth and enhancing the community's appeal. As Moorhead continues to evolve, these initiatives are expected to play a crucial role in shaping the city’s residential landscape and attracting new residents.