What is the Disparity Tax Credit?
TL;DR- If your business is commercial, industrial, or 4A Apts, Polk Co. automatically reduces your tax rate down to roughly 1.6%.
The disparity reduction credit (DRC) is a state-paid property tax credit that reduces property taxes for apartment and business properties in certain border areas of the state.
🚨Make sure to check your business's property tax bill and look for the DRC or a line item "credit".
Each eligible property receives the amount of credit necessary to reduce its net tax capacity-based property tax to roughly 1.6 percent of the taxable market value of the property.
The credit reduces both the local property tax levy and, in the case of commercial-industrial property, the state general levy. The credit does not apply to any referendum market value-based levies (primarily school district operating referendum levies).
The county auditor reduces the property taxes otherwise due upon the property by the amount of the credit. The county auditor reports the amount of the credit issued to the state, and the state then reimburses the affected taxing jurisdictions for the credit amounts deducted from the taxes.
❓For questions or clarification on this program, contact:
Sam Melbye, Polk Co. Tax Auditor
sam.melbye@co.polk.mn.us
612 N Broadway,
Crookston MN 56716
United States of America