The City of West Fargo determined that the present method of assessment of real property did not encourage investment of capital in rehabilitation and remodeling of commercial buildings which resulted in some properties being allowed to decay and become in need of repair and modernization; and thereby, resulting in a decreasing of the tax base.
The City chose to use the Property Tax Exemption for Improvements to Commercial Buildings (NDCC 57-02.2) as an economic development tool to prevent this from happening. Also known as the remodeling exemption, the City offers either a three or five year exemption based on the value of the completed project. If the property value increase is over $25,000 the property is eligible for 5 years. If it is less than $25,000 the property is eligible for 3 years.
There is not an age requirement on commercial properties. The exemption must be approved by the City Commission. The last assessment on record will remain for up to 5 years and any value gained by the remodeling would be exempted.
When to Apply
In order to qualify for the remodeling exemption, you must apply before the project starts.