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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~