Laserfiche WebLink
Fiscal Disparities <br /> The Fiscal Disparity Law ( M. S . 473F) was adopted by the Minnesota • <br /> Legislature in 1971 as a means for discouraging unfair <br /> competition among the cities in the seven county metropolitan <br /> :area for commercial and industrial development, to encourage a <br /> distribution of such development, and to distribute revenues <br /> derived from such development among the "haves" and the "have <br /> Hots" , thus , providing for an "equalization" of commercial/ <br /> industrial valuations and tax benefits . <br /> Essentially, the law provides for each city to make 'a contribu- <br /> tion to a "pool" of valuations equal to 40% of its net growth <br /> ( present year valuations minus base assessment year 1971 <br /> valuations ) which includes new construction , increases in <br /> valuation due to higher market prices or inflation , decreases in - <br /> valuation due to lower market prices , demolition of buildings or <br /> other reasons . Each municipality receives back a share of the <br /> pool based on a formula using population and " fiscal capacity" <br /> ( valuation divided by population ) as the main measures . <br /> A simplified example of the tax computation for 1985 on a parcel <br /> DE commercial/industrial real property in Mounds View with an <br /> estimated market value of $100 , 000 is given below: <br /> Assessed value is determined as follows : • <br /> 1 . 410 43% of the Estimated Market Value = the Total <br /> Taxable Assessed Value . <br /> ( . 43 x $ 100 , 000 ) $43 , 000 <br /> 2 . 1985 Fiscal Disparities Sharing Factor of <br /> . 406889 times the total taxable assessed <br /> value equals the amount of value to be <br /> shared and bears the area wide mill rate . <br /> ( . 406889 x S43 , 000 ) $ 17 , 496 <br /> 3 . Total Taxable Assessed Value minus amount to <br /> be shared equals amount of value which will <br /> bear the local mill rate . <br /> ( 0100 , 000 - $17, 496 ) $82 , 504 <br /> The taxable assessed values shown in ( 2 ) and ( 3 ) <br /> above are the amounts to which tax rates are <br /> applied . <br /> 4 . Total Local Mill Rate of 99 . 165 times the assessed <br /> value remaining local equals the local tax . <br /> ( . 099165 x 582, 504 ) S 8, 181 . 51 <br /> 5 . Fiscal Disparity Mill Rate of 108 . 743 times the <br /> assessed value to be shared equals the shared <br /> tax . <br /> ( . 108743 x 017 , 496 ( $ 1 , 902. 574111 <br /> 6 . Total Tax Payable ( 4 and 5 ) $10 , 084 . 08 <br /> 1-13 <br />