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ExecutiveSummary:StudyoftheMetropolitanAreaFiscalDisparitiesProgram <br />FortheMinnesotaDepartmentofRevenue <br />Withalljurisdictionscombined,allsinglefamilyresidentialprototypesproducenetdeficits, <br />exceptforsinglefamilydetachedunitsofhighervalueunderbothtaxsystemassumptions.For <br />allresidentiallandÒ­;­“­z“mŒ;familymedianandlowervalueunits,multifamily/condo,and <br />¦©·’;“·“©;Ý;“Ò;­ateachlevelofgovernmentareinsufficienttocovercosts.(Theonly <br />exceptionissinglefamilymedianvalueunitsatthecountylevelunderthecurrentsystem.)Even <br />withFiscalDisparitiesallocationtoresidentiallanduses,netdeficitsaregenerated. <br />ForresidentialunitswithouttheFiscalDisparitiesprogram,netdeficitsare7;;¦;“;7““7 <br />generatedatalllevelsofgovernment(withtheexceptionofhighervaluesinglefamilyunits). <br />TheincreaseintaxratesisnotsufficienttocoverthelossinFiscalDisparitiesrevenue. <br />Fornonresidentialprototypelandusesunderthecurrenttaxsystem,onlyindustriallanduses <br />generatenetsurpluses.Theremainingnonresidentialprototypesgeneratenetdeficits(office <br />andinstitutio <br />“Œœ““overburden,orbreakeven(office).(Forschooldistrictresults,theresult <br />fornonresidentiallandusesareanetsurplusduetorevenuesgeneratedbutnodirectcosts.) <br />FornonresidentiallanduseswithouttheFiscalDisparitiesprogram,combinedresultsproduce <br />netsurpluses,withtheexceptionofinstitutionaluses.Theamountofdirectrevenuecaptured <br />bytheselandusesissufficienttocovertheprojectedexpenditures,duetoboththedirect <br />captureoftaxbaseandthetaxrateincreaseneededtogeneratethesamelevy. <br />Thecombinedresultisthatthereappearstobean{šÝ;©,Ò©7;“|underthecurrentsystem <br />whenlookingatindividualnonresidentiallanduseprototypesforthiscommunity,specifically <br />withretailandofficetoacertainextent.Thisistrueeventhoughthiscommunityisanet <br />recipient.Industriallandusescovertheirrespectivecosts.Whentheprogramisassumedtobe <br />eliminated,taxratesareassumedtoincreaseinthiscommunityandmorerevenueiscaptured <br />bythenonresidentialdevelopment.Therefore,fiscalresultsimproveandswitchfromanoverall <br />netdeficittonetsurplusfornonresidentiallanduses(exceptinstitutional).However,results <br />varybyjurisdictionlevelwhereserviceimpactsareexperienced(i.e.,cityresultsforretail <br />remainanoverburden). <br />33 <br /> <br />