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ExecutiveSummary:StudyoftheMetropolitanAreaFiscalDisparitiesProgram <br />FortheMinnesotaDepartmentofRevenue <br />Figure19.TaxRateswithandwithouttheFiscalDisparitiesProgrambyRegionalDevelopment <br />Classification:2011 <br />AverageofAverageofAverageofAverageofAverageof <br />CurrentLawCurrentLawCurrentLawCurrentLawCurrentLaw <br />CountyRateMuniRateSchoolRateSpecialsRateTotalRate <br />CentralCities47.09%57.81%24.15%9.83%138.87% <br />DevelopedAreas43.10%37.66%21.90%8.57%111.23% <br />DevelopingAreas38.89%34.29%26.32%7.42%106.92% <br />RuralAreas34.48%22.29%25.26%5.94%87.97% <br />RuralGrowthCenters38.29%51.17%26.49%5.65%121.60% <br />Excluded40.42%22.87%15.01%7.39%85.70% <br />AverageofAverageofAverageofAverageofAverageof <br />NoFDNoFDNoFDNoFDNoFDInc/DecinRate <br />CountyRateMuniRateSchoolRateSpecialsRateTotalRatewithoutFD <br />CentralCities46.20%58.32%27.88%9.60%142.00%3.14% <br />DevelopedAreas42.54%36.98%23.73%8.39%111.63%0.40% <br />DevelopingAreas38.58%33.82%28.43%7.32%108.15%1.23% <br />RuralAreas35.06%23.63%28.51%6.03%93.24%5.27% <br />RuralGrowthCenters39.37%60.03%31.12%5.82%136.35%14.74% <br />Excluded39.56%22.87%15.64%7.17%85.24%0.46% <br />2011FiscalDisparitiesAreawideRate129.327% <br />Source:MNDept.ofRevenue.(Weightedaveragesbygroup.) <br />Allgroupings,otherthanthoseexcludedfromtheprogram,wouldexperienceanincreaseintaxratesif <br />theFiscalDisparitiesprogramwereeliminated.Asshownabove,thelargesttaxrateincreasewouldbe <br />experiencedinRuralGrowthCenters(withanincreaseof14.74percent).Thelowestrateincrease <br />wouldbeexperiencedinDevelopedAreas,withanincreaseof0.40percent.Notethatunderthis <br />simulationthereisanoverallincreaseinlocaltaxratesfromtheeliminationoftheprogramof2 <br />percentagepoints.Thefiscaldisparitiesareawiderateisbasedonpreviousyearlocaltaxrates.Localtax <br />ratesincreasedabout10percentagepointsacrossthemetroareabetween2010and2011dueto <br />significantreductionsinpropertyvalues.Replicatingthissimulationatatimeofsteadytaxrateswould <br />resultinmostnetcontributorareashavingtaxratereductions. <br />TofurtherinvestigatetheeffectoftheFiscalDisparitiesProgramontaxrates,weusedthenet <br />contributor/netrecipientgroupingstodeterminethemagnitudeoftherateincreaseanddecrease. <br />Findingsareshownbelow. <br />21 <br /> <br />