Say you buy a two-year-old house in south Moorhead next spring. Who gets the property tax rebate check that goes out that December, you or the people who sold it to you?
Under the City of Moorhead's own program rules, the check goes to the owner of record when the rebate is processed. The city tells sellers to "specify distribution of this rebate as a provision of your sales agreement with the buyer." On a typical new home that check can be worth several thousand dollars, and the payment schedule runs years behind the construction date. So the Make Moorhead Home rebate is a real line item in the resale of many recently built Moorhead homes, along with every new build.
The rebate is attached to the house
Moorhead's Make Moorhead Home property tax rebate has no application. The city says a property is enrolled automatically when the building permit for a new home is issued. It has no cap on construction value, and land value counts in the calculation. You don't need to be a first-time buyer, and there are no income limits. The only condition is that you're building new or buying a home nobody has lived in.
You still pay your taxes on the normal May 15 and October 15 due dates. The rebate on the eligible portion is then refunded each December during the eligibility years. City council materials say Clay County handles distributing the payments.
Enrollment starts with the permit, and the check goes to whoever is on the deed in December. The buyer who closes on a spec home is just one owner in that chain. If the house sells while the rebate period is still running, the next owner can end up with the money unless the contract says otherwise.
Why the checks show up years after construction
The rebate is figured from the property's value on January 2 of each of the two years after the building permit, according to the city's rebate calculator page. Those assessments set taxes that are payable the following year, and that's where the delay comes from.
You can see the lag in the city's own records. In a February 23, 2026 council packet, homes where construction started in 2023 were in year 2 of the rebate for taxes payable in 2026. Homes started in 2024 were in year 1. That covered 136 properties and roughly $287,889 rebated by the city for 2026.
| Construction start | January 2 valuations | Taxes payable | Rebate checks |
|---|---|---|---|
| 2023 | 2024 and 2025 | 2025 and 2026 | December 2025 and December 2026 |
| 2024 | 2025 and 2026 | 2026 and 2027 | December 2026 and December 2027 |
| 2026 permit, if the pattern holds | 2027 and 2028 | 2028 and 2029 | December 2028 and December 2029 |
The bottom row is projected from the schedule above it. If that pattern holds, a house permitted this year won't produce its last rebate check until late 2029. Plenty of homes sell well inside that window, especially in a metro with job transfers and move-up buyers.
The January 2 date matters for a second reason. If a house is only partly built on either of those dates, the calculator tells owners to estimate the value of the partial building plus the land. A home that was still a shell on January 2 gets a smaller rebate for that year than one that was finished.
What "two years of taxes" covers, and what stays on the bill
The rebate is broader than many buyers expect. It covers general taxes paid to the City of Moorhead, Clay County, and Moorhead Area Public Schools. The city, county, and school district each passed resolutions agreeing to raise their annual levies to pay for it. Special function levies and special assessments are excluded.
The FM Extra gave an example in its report on the 2024 extension. A $300,000 single-family homestead with an estimated annual tax of $4,278.71 would get an estimated $3,671.13 back, leaving about $607.58 in net tax for the year. The city's current estimate is that a new $300,000 home may get more than $7,500 back over the two years.
Compare that with what homes sell for. In September 2026, the median sale price in Clay County was $300,000, down 2.3% from a year earlier. Across the wider Fargo-Moorhead Area Association of Realtors region it was $325,000, up 3.2%, according to Minnesota Realtors' September report. At those prices, a rebate in the $7,500 range is a few percent of the purchase price. That's about the size of the concessions buyers and sellers argue over at the table.
Special assessments are where Moorhead's second incentive fits in. The First & New program offers first-time buyers of a newly built home, as its first occupants, a $5,000 deferred loan at 0% interest toward special assessments for curb, gutter, paving, sewer, and water. It has no income or price limits, it's repaid when the owner sells or moves, and it can't be assumed by a buyer. The city has $500,000 set aside, and the program runs while funds last.
Writing the rebate into the purchase agreement
The city doesn't say how a rebate should be split in a sale. It only says the sales agreement should spell it out. On a Moorhead home built in the last few years, both sides should have these facts before an offer is written:
- The permit year. It sets which January 2 valuations count and which Decembers the checks arrive.
- Which rebate years are already paid. A home in year 2 has one check left. A home in year 1 may have two.
- The value on each January 2. A partly built house on either date means a smaller rebate for that year.
- Who the check goes to. It's made payable to the owner of record when the rebate is processed, which is why the city suggests addressing distribution in the sales agreement. The terms are for the parties and their attorneys to settle.
- Any First & New loan balance. It's repaid when the owner sells and can't pass to the buyer.
The City Assessor's Office takes questions about program timing at 218.299.5310. This post is general information, not legal, tax, or financial advice. Please confirm your property's rebate status and contract language with the assessor, your attorney, or your tax professional.
The sunset date and the December 14 vote
The city's program page says the program "expires 12/31/2026 unless extended." The page doesn't say whether that date applies to permits issued, construction started, or tax years. Anyone planning a 2027 build should ask the assessor's office how a permit pulled close to year-end will be treated.
The sunset is built into the program. Lisa Bode, the city's governmental affairs director, explained the two-year cycle to the FM Extra:
"We sunset the program every two years so that the local policymakers can review the program."
The program dates to 2012. The most recent renewal was Resolution 2024-1015-G, adopted October 15, 2024. The council has not yet acted publicly on a 2027 renewal. InForum reported that the preliminary 2027 levy approved Sept. 28 includes $250,000 for an "economic development rebate program." The final levy vote is set for Dec. 14. The story doesn't say that line is Make Moorhead Home, so for now the program's future after 2026 is an open question.
Why the timing matters more in Moorhead right now
Moorhead is where much of the metro's single-family building is happening. The city issued 104 single-family permits in 2025, up from 75 in 2024. Shelly Zeis of the Building Industry Association of the Red River Valley told InForum she credits land availability, while West Fargo, Horace, and Fargo "are starting to slow down on buildable land until the diversion gets through."
Lots are tight, though. The city counted 117 fully serviced, buildable lots at the end of 2025. At its 10-year average of about 111 permits a year, that's roughly a one-year supply. In March, InForum reported 195 more lots expected by the end of 2026. Of those, 118 are in the third and fourth additions of Prairie Parkway, near 40th Avenue South and 28th Street South, east of Southside Regional Park. The other 77 are in Partridge Creek, farther south on 28th Street. The city's September 2026 new-homes permit list shows Jordahl Custom Homes building in Partridge Creek and ACM Properties pulling attached-home permits in Prairie Parkway 3rd Addition. A plat for Partridge Creek East went before the Planning Commission on October 5.
Those new lots are opening just as the rebate reaches its sunset date. Every house permitted on them will either join the rebate schedule or miss it, depending on what the council decides.
A few direct questions
Does a resale buyer get any rebate? Program eligibility is for new homes nobody has lived in. The check, though, goes to the owner of record when it's processed. So a home sold during the rebate period can still have checks coming, and the city points sellers to the sales agreement to address who receives them.
Does the rebate cover special assessments? No. Special assessments and special function levies are excluded. The First & New loan is the city's tool for first-time buyers' assessments.
How do I estimate my own rebate? The city's calculator asks for the year the home was completed, its estimated market value, and whether it's a single-family homestead.
If you own a Moorhead home built in the last few years and are thinking about selling, any rebate checks still to come belong in your pricing and your contract. Up North Realty Group can go through your permit year, which checks have been paid, and what a buyer will ask about before you list. Get Your Home's Value.
