Applications Open for Wadena County’s Housing Tax Abatement

Wadena County is actively accepting applications for its Tax Rebate Program, designed to support new housing development and ease local housing shortages. Launched by the County Board of Commissioners in fall 2023, the program offers property tax rebates for newly constructed single- and two-family primary residences.

West Central Economic Development Alliance (WCEDA) encourages interested parties to learn more about this tax abatement policy, familiarize themselves with its requirements and fill out the application, found here.

With over 30 homes already approved and benefiting from the rebate during the inaugural 2024 and 2025 building seasons, the program is off to a strong start. In addition to meeting immediate housing needs, it aims to grow the county’s long-term tax base and strengthen local communities.

Tax Abatement Policy Information

Eligible units of housing that qualify include single-family or two-family homes. Houses may be new construction projects or modular, including an attached garage of up to 1,000 square feet. Note: Mobile homes do not apply for the tax abatement.

A 100% tax rebate of Wadena County’s share of increased real estate taxes as a result of building a new home may be available for any person who constructs a new house of the aforementioned categories, provided application materials are properly filed and approval from local jurisdictions is received. The tax abatement runs for a period of up to five years or up to $15,000 – whichever is met first – if the following criteria are met:

• Properties must be located in Wadena County and properly zoned 
• The property/applicant must not have benefited from additional financial assistance, including tax increment funding. 
• All local, state and federal regulations are adhered to at the time the building/zoning permit is secured.
• Property taxes are paid in full, on time and current. Any delinquencies in property taxes shall result in the revocation of the rebate for each year taxes are not current.
• Application must be submitted prior to construction commencing on the new home.

For partially constructed housing, the rebate in its first year of application may be significantly less than the following years, but will still count for one of the five years of eligibility.

In addition, recipients must allow access to County Accessor staff to perform an appraisal for tax assessment purposes. In the event of refused access, the tax rebate will expire for the remaining period of the rebate term.

The rebate period commences in the tax year when the property increases in value over the original due to the construction of the housing project. If construction has not begun within one year of approval, the rebate will no longer apply, resulting in the property owner needing to reapply in adherence to the program stipulations.

Finally, the rebate:

• Transfers with the sale of the property for the balance of the five-year period or until the maximum abatement ($15,000) is met.
• Does not include voter-approved property tax referendums.
• Does not include or apply to existing and/or new property assessments.
• Is limited to one tax abatement per taxpayer.

Application Details & Requirements

The Wadena County tax abatement application can be accessed digitally here. A complete application will contain: 

• A site plan of the proposed house/project.
• Address and/or property identification number.
• A copy of the building/zoning permit, once issued.
• A statement requesting the tax rebate for eligible projects, addressed to the Wadena County Auditor/Treasurer.

All applicants must submit a statement verifying that no construction has started before approval of the rebate request. Construction includes footing installation, slab, foundation, posts, walls or other portions of the building. Utility installation, land clearing or site preparation shall not be constituted as construction.

Minnesota Statue requires Wadena County to approve each application. The tax abatement policy does not apply to City, Township or School District property taxes. Denied applicants may appeal to the county board.

For additional information on the Wadena County Tax Rebate Program, contact WCEDA.