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Renaissance Zone extended

By Staff | Jul 2, 2020

The Renaissance Zone will continue for another five years in Rugby.

The City of Rugby received a letter and copy of an updated Renaissance Zone Memorandum of Agreement from the North Dakota Division of Community Services effective from July 1, 2020 to July 1, 2025.

The zone, which was created in 2005, is located within the downtown Rugby area and covers 23 blocks. Its intent, according to a statement from the Rugby Job Development Authority, is to “revitalize the core of the community by providing specific tax incentives to encourage reinvestment” in properties within it.

Commercial properties within the zone are eligible for a 100% exemption on improvements for five years, provided capital improvements must be made equal to $10,000 of capital investment or 50% of the true & full value of the property prior to improvements, whichever is greater. (The exemption does not apply to the land.)

Properties subject to be demolished are eligible for a 100% exemption on new construction.

Also available for commercial property owners whose within the zone have been approved is a state income tax exemption on income from business or investments. That exemption also lasts for five years.

Residential properties within the zone are also eligible for exemptions for improvements. They must make improvements equal to $10,000 of capital investment or 20% of the true & full value of the property prior to improvements, whichever is greater. Newly-constructed residential properties are also eligible for 100% exemptions for five years.

Capital improvements are defined as those that “substantially improve the life expectancy of the property” and include, but aren’t limited to, replacing/repairing roofs, foundations, structures, electrical, plumbing and heating and cooling systems. They do not include furnishings, floor coverings or window treatments.

Those seeking property tax exemptions for improvements on commercial or residential properties within the zone must complete an application and have it approved by the Rugby Renaissance Zone Committee, Rugby City Council and the N.D. Department of Commerce before an eligible purchase, lease, rehabilitation or construction project begins. Also required is a certificate of good standing from the N.D. Tax Department.

A map of the zone, application and other information on the city and JDA websites. A printed brochure is also available at the JDA office and Rugby City Hall.

– Tribune Staff Report

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