If you’re planning to remodel or improve your home or business, the City of Casselton offers a helpful tax incentive that could save you money. Through the Property Tax Exemption for Improvements program, qualifying projects on older buildings may receive a break on the increased property taxes resulting from the upgrade.

For example, let’s say your home was valued at $150,000 before your remodel, and after adding an attached garage and updating the kitchen, the new value is assessed at $200,000. Normally, you’d start paying property taxes on that $50,000 increase right away. But with the exemption, you’ll continue paying taxes based on the original $150,000 value for the approved exemption period—up to five years—giving you time to enjoy the improvements without immediately feeling the financial impact.

This exemption is available for both residential and commercial properties that are at least 25 years old at the time of application. The exemption applies only to the increased value created by your improvements—not the land value—and can last for up to five years, depending on what’s approved by the City Council.

What Types of Projects Qualify?

Your project may be eligible if it involves:

• Renovation: Restoring the building to a good state of repair
• Remodeling: Updating layout or style to correct functional problems
• Alteration: Making material changes to an existing structure
• Addition: Expanding the building with an attached new space

Whether you're adding a new bathroom, updating a kitchen, or getting new windows, this program could help reduce your tax burden during and after your project.

What Doesn’t Qualify?

Some projects aren’t eligible, including:

• Projects that begin before the exemption is approved
• Complete tear-downs and rebuilds
• New freestanding structures that aren’t attached to the original building

How to Apply

Getting started is straightforward, but timing is everything—follow these steps carefully to make sure your project qualifies for the exemption.

1. Apply before your project starts. This is key—the exemption only applies if approved in advance.  
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2. Submit your application to the Casselton City Assessor. They’ll confirm your building qualifies and your project fits the guidelines. Keep in mind the Casselton Economic Development office is also a resource to answer your questions and help you get started.
3. Wait for City Council approval. The exemption must be granted before construction begins.

Once approved, the exemption takes effect on the next property assessment and lasts for the approved number of years.

A Smart Way to Save

This exemption is a smart option for property owners looking to invest in improvements while keeping property taxes in check. If you're considering a project, talk to the Casselton City Assessor early in your planning process to find out if you qualify.