Fiscal Disparities

Tax-Base Sharing in the Metro Area

Downtown Minneapolis commercial-industrial buildings.

The Twin Cities attracts national and international interest because of an innovative tax-base sharing program, known as the Fiscal Disparities Program. The size of the seven-county area it covers and the amount of commercial-industrial tax base shared make the program unique.

th the support of the Metropolitan Council, the Minnesota Legislature created the metro area program in 1971. Tax-base sharing supports the Council’s goals of:
  • Promoting orderly and efficient growth.

  • Improving equity.

  • Strengthening economic competitiveness.

  • Encouraging land uses that protect the environment and increase livability.

Tax-base sharing spreads the fiscal benefits of commercial-industrial growth no matter where the property exists within the metro area. It reduces large differences in property tax wealth between communities with a lot of commercial-industrial tax base and those with little. Differences reflect how commercial-industrial development tends to concentrate near regional infrastructure and services, such as highways, wastewater treatment, and transit.

Tax-base Sharing Goals
How Tax-base Sharing Works
2019 Results in the metro area
Participation and Impacts on Communities
More Information