The Wadena County Auditor/Treasurer, Heather Olson, presented info on a housing tax abatement policy for the Wadena County tax rebate program at a public hearing.
The objective of the program is to tackle the shortage of housing in Wadena County and to enhance the value of the county’s future tax base by encouraging the construction of new single-family and two-family homes for primary residences.
The committee’s findings regarding criteria for qualifying housing structures, such as a single-family home or a duplex, were discussed. In addition, dwellings may be newly built or modular, with an attached garage.
However, only the tax imposed on the value of the area dedicated as well as occupied as a residence plus 1,000 square feet for the garage is qualified for the housing tax exemption. Mobile dwellings are ineligible.
How to Qualify on The Tax Rebate?
Olson added that to qualify for the 100% tax rebate, individuals constructing a new single-family or two-family home must file application materials, gain local jurisdiction approval, meeting conditions for up to five years or up to $15,000 tax rebate.
- The land resides in Wadena County as well as is zoned appropriately for the proposed residence.
- Neither the applicant nor the property may have received other local financial assistance (including tax increment financing).
- The project is constructed in accordance with all applicable local, state, and federal regulations during the time the building/zoning permit is granted.
- Taxes on the property are recent and paid in full and on time. In the event that property taxes are not paid on time, the tax rebate will be revoked for each year that taxes are delinquent.
- Prior to beginning construction on the new house, administrative approval must be obtained.
The rebate period will commence in the tax year in which the property’s value increases due to the construction of the housing development.
In addition, the rebate is transferable with the sale of the property for the remainder of the five-year period or up to the maximum rebate of $15,000 has been reached.