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 metro area it covers and the amount of commercial-industrial tax base shared make the program unique.

With 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:

  • Improving equity
  • Supporting cost-effective regional wastewater treatment and transportation services
  • Promoting a regional approach to planning and development
  • 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
2021 Results in the metro area
Participation and Impacts on Communities
More Information