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Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) "Fiscal Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as "Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the increase in commercial-industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area- wide tax base shall be distributed back to each assessment district. Iron Range Fiscal Disparities In 1996 Minnesota Legislature established a commercial-industrial tax base sharing program for the Iron Range that is modeled after the Twin Cities metropolitan area program commonly known as "fiscal disparities." Under the Iron Range Fiscal Disparities ("IRFD") program, 40% of the growth in each municipality's commercial-industrial tax base after 1995 is contributed to an area wide pool. The tax base pool is distributed back to municipalities on the basis of property wealth per capita; i.e., municipalities with lower property wealth receive greater distributions. For the purposes of the IRFD program, commercial-industrial property includes public utility property, but does not include commercial, seasonal, recreational property. All local taxing jurisdictions in the area, including counties, cities, towns (including unorganized towns), school districts, and special taxing districts, participate in the IRFD program. • The IRFD program is identical to the Twin Cities metropolitan area program except for the provisions summarized below: 1. The geographical area involved is the taconite tax relief area. This includes all of Cook County and Lake County, most of Itasca County and St. Louis County (the City of Duluth and surrounding area is not included), portions of Aitkin County and Crow Wing County, and a very small portion of Koochiching County. 2. The base year is 1995, so that 40% of the growth in commercial-industrial tax base after 1995 will be shared. The first tax year to be affected will be 1997/98. 3. Municipalities are not required to share commercial-industrial growth in tax increment financing (TIF) districts created before May 1, 1996. 4. Municipalities that consciously exclude commercial-industrial development are excluded from participation. This will be determined by a joint effort of the Department of Revenue (MnDOR) and the Iron Range Resources and Rehabilitation Board (IRRRB). A lower court has declared the Iron Range Fiscal Disparities Law unconstitutional. This ruling is in the process of being appealed. III-4