Tax-Base Sharing in the Metro Area
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.
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:
Promoting orderly and efficient growth.
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.