New Construction Tax Exemption in Horace

Horace pairs small-town living with quick access to Fargo, and the city's two-year property tax exemption makes building here even more attractive. The program was briefly paused in early 2023 but was reinstated by the City Council in June 2023 after strong community support. The exemption covers up to $150,000 of improvement value on new single-family homes, condos, and townhouses. The council is scheduled to review the program again in November 2026. Program details current as of August 2026.

Program at a Glance

Official program page

Frequently Asked Questions

Is Horace's new construction tax exemption still active?

Yes. The program was reinstated by the Horace City Council on June 20, 2023, after a brief pause earlier that year. It applies retroactively to properties permitted during the gap. The next scheduled review is November 2026.

How do I apply for the Horace tax exemption?

Download the application form from the City of Horace website and email it to cityclerk@cityofhorace.com. The form must be filed before February 1 of the first exemption year.

How much can I save building in Horace?

The exemption covers up to $150,000 of your home's improvement value for two taxable years. At current Cass County mill rates, that works out to approximately $4,000 in total savings. Exact savings depend on the mill levy in effect when your property is assessed.

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Modern Market REALTORS® — Jim Christl (Broker) & Shannon Barnum (Associate Broker). Serving Fargo, Moorhead, West Fargo, Horace, Detroit Lakes, and Minnesota lake country. Call (701) 205-5517.