Fiscal disparity is metropolitan county program that was created in 1971. It promotes better regional planning and improves equity in the distribution of fiscal resources. The counties included in the program are: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties.
Forty percent of the growth in commercial/industrial property forms a 'pool' shared with all taxing jurisdictions within the metropolitan area. This tax base sharing spreads the financial benefits of a large commercial/industrial tax base. For instance, communities aren't at a disadvantage for having parks or open green space that don't contribute to the tax base. They also aren't hindered for lacking infrastructure, such as highways or transit, that would promote growth.
Learn more about fiscal disparity on the League of Minnesota Cites website.
Contributing to the pool
For properties, mainly commercial and industrial, that contribute to fiscal disparity, part of the assessed value will be subject to an areawide fiscal disparity rate. The remaining value is taxed at the local tax rate.