Laserfiche WebLink
ExecutiveSummary:StudyoftheMetropolitanAreaFiscalDisparitiesProgram <br />FortheMinnesotaDepartmentofRevenue <br />POLICY CONSIDERATIONS <br />Thereportconcludeswithadiscussionofpolicyconsiderations,includingcriticisms,issues,andpraise <br />fortheFiscalDisparitiesprogram. <br />KeyIssues <br />Impactofthecurrenteconomicdownturnonlocalities.Withthecurrenteconomicdownturn <br />andlocalgovernmentbudgetarystress,aprominentissueisthatwithaportionofaŒš-Œz·äx­ <br />taxcapacitygoingtoasharedpool,netcontributorsarenotreceivingthefullrevenuefrom <br />theirpropertytaxbase. <br />ExpansionoftheProgramtoadditional,outlyingjurisdictions.Suggstionshavebeenmadeto <br />expandtheprogramtooutlyingMinnesotacounties,whicharenowconsideredpartofthe <br />regionallabormarket. <br />Inclusionofresidentialtaxbaseintheprogram.Somehavecalledforadding{wzmw;“7| <br />residentialtaxbasetotheProgram.Expansionoftheprogramtoincluderesidentialhomestead <br />propertiesover$200,000wasproposedandpassedintheMinnesotaLegislaturein1995but <br />vetoedbytheGovernor. <br />Adjustingthe40percentcontribution.Ithasbeennotedintheliteraturethatthe40percent <br />shareisarbitraryandithasnotbeenprovenifthisisthethresholdafterwhicha <br />commercial/industrialproperty{¦ä­forz·­;ŒE|locallyintermsofrevenuesgeneratedand <br />costsincurred.Asdiscussedinthisreport,thisdependsonthelevelofgovernmentandthetype <br />ofcommercial/industrialproperty. <br />Allowingforexclusionsofcertain{©;mionalben;Ez·|propertiesthatgeneratehighcostsand <br />serveasregionaleconomicengines(e.g.,theMallofAmerica).Thiswasattemptedrecentlyin <br />200708whentheMallofAmericarequestedexemptionfromthetaxbasesharingpoolforits <br />expansion.Theproposalwasdefeated,butopeneddiscussionandattentionontheissue <br />surroundingpropertiesofregionalbenefitandhowtheyrelatetotheFiscalDisparities <br />Program. <br />Adjustingtheassessmentlevel.Eachjurisdictionassessespropertyunderitsownassessment <br />systemallowingforsomevariationinassessmentlevels.Therefore,thecontributionfromeach <br />taxingjurisdictionisbasedonthelocallyderivedassessment,thuscreati <br />ng{“apparent <br />36 <br /> <br />