Fiscal Disparities

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.

How it works

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.

 

Recipients and contributors

The shared tax base totaled $369 million for taxes payable in 2013. 

Key findings