HomeMy WebLinkAboutResolution 91-11RESOLUTION ~91- ]]
.CITY COUNCIL SUPPORT FOR PISCAL DISPARITIES
~HEREAS, the State of Minnesota adopted a system designed to share
tax resources in the metropolitan area known as fiscal disparities; and
~HEREAS, the Minnesota fiscal disparities law is the very first tax
sharing system adopted in the United States and has become a model for
other states: and
~HE~EAS, the idea of tax-base sharing is to narrow the gap between
communities with a strong and growing commercial-industrial tax base and
communities with small or stagnated commercial-industrial tax base. To
lessen the difference between these "haves' and "have-nots," the law
requires that 40 percent of new commercial-industrial tax base be put back
into the metropolitan pool and apportioned back to communities according
to their population and overall tax base; and
WHEREAS, tax base sharing makes sense because communities in the,
Twin cities area are interdependent parts of a single economic entity.~
One city might provide a family with a place to live, another a place to
work, another a place to attend school, another a place to shop, another
a place to generate the electricity to lift their home, and another a
location to handle waste products.
%rHEREAS, the Minnesota fiscal disparities tax sharing system is
working and has achieved its objective; and
WHEREAS, without fiscal disparities the richest communities in the
metropolitan area would have a per capita commercial-industrial tax base
of 22 times as big as the smallest; and
~HEREAS, with the fiscal disparities system the spread between
richest and poorest is just 4 to 1; and
~HEREAS, fiscal disparities is an integral part of our property tax
system and is a fundamental benefit to the entire metropolitan area
because it recognizes we are an interdependent economic unit; and
NOV, THEREFORE, BE IT RESOLVED that the fiscal disparities
contribution rate be retained in its present form without change.
Passed this 25th day of Pebruary, 1991.
Offered by:
Seconded by:
Roll call:
Ruettimann
Peterson
All ayes
-Anne Stud-en~, Co-u'6'~l Secreta y
Mayor EdWard M. 'Carlso~