Tax-Base Sharing in the Twin Cities Metropolitan Area
The Twin Cities is nationally known for its unique tax-base sharing program. The main goals of the program are to:
provide a way to share resources generated by the region’s growth; and
reduce competition for tax base, making orderly development more likely.
Taxing jurisdictions in the seven-county area contribute part of the growth in commercial-industrial property tax base values into an area-wide shared pool. This shared pool of tax base is then distributed based on population and the value of all property compared to the metro average. Jurisdictions with below-average property value per capita receive a relatively larger distribution of tax base.
See a brief summary of the Fiscal Disparities program (16 pages, pdf) which includes:
Background and history
Purpose and how it works
Impacts and results
Links to more information.
The shared tax base totaled $369 million for taxes payable in 2013.
Recipients. A total of 108 communities receive more tax base than they contribute. See the top 20 net recipients in a table (Excel) and on a map (pdf).
Contributors. Seventy-one communities contribute more tax base than they receive back from fiscal disparities. See the top 20 net contributors in a table (Excel) and on a map (pdf).
See Key Findings for taxes payable in 2013 (pdf).
See the top 20 communities with the highest share of commercial-industrial tax base for areas with a population over 5,000 (Excel).
See comprehensive information on fiscal disparities and related data by community, county and planning area (Excel).