Gross Tax - $4,999
Gross Effective Tax Rate - 2.50%
Net Effective Tax Rate (due to Disparity Reduction Credit) - 1.60%
% Tax Reduction - 36%
Dollars Saved - $1,799
Net Tax - $3,200
Commercial Taxes
Understanding Commercial Property Taxes in Moorhead
Curious about how commercial property taxes work in Moorhead? It’s simple. Your taxes are based on your property’s assessed market value.
Here’s the good news: as a border city, Moorhead benefits from the Disparity Reduction Credit Program, which helps keep commercial and industrial property taxes competitive with North Dakota. This special legislation caps property tax rates at 1.6% of the assessed market value. Even better, the credit is automatically applied to your property tax statement!
Want to see the taxes for a specific property? Visit Moorhead’s Property Information page for all the details.
Next up: we'll look at how the impact of this program impacts your property taxes.
See the Difference: Disparity Reduction Credit in Action
$200,000 Commercial-Industrial Property Value
$500,000 Commercial-Industrial Property Value
Gross Tax - $15,326
Gross Effective Tax Rate - 3.07%
Net Effective Tax Rate (due to Disparity Reduction Credit) - 1.60%
% Tax Reduction - 48%
Dollars Saved - $7,326
Net Tax - $8,000
$1,000,000 Commercial-Industrial Property Value
Gross Tax - $32,537
Gross Effective Tax Rate - 3.25%
Net Effective Tax Rate (due to Disparity Reduction Credit) - 1.60%
% Tax Reduction - 51%
Dollars Saved - $16,537
Net Tax - $16,000
$5,000,000 Commercial-Industrial Property Value
Gross Tax - $170,224
Gross Effective Tax Rate - 3.40%
Net Effective Tax Rate (due to Disparity Reduction Credit) - 1.60%
% Tax Reduction - 53%
Dollars Saved - $90,224
Net Tax - $80,000
$10,000,000 Commercial-Industrial Property Value
Gross Tax - $342,334
Gross Effective Tax Rate - 3.42%
Net Effective Tax Rate (due to Disparity Reduction Credit) - 1.60%
% Tax Reduction - 53%
Dollars Saved - $182,334
Net Tax - $160,000