Proposal Accelerates Fiscal Disparities Info, Changes Levy Calendar

The Municipal Legislative Commission seeks ways to get cities information from the fiscal disparities program faster.
(Published Feb 6, 2014)

A proposal by the Municipal Legislative Commission (MLC) (a group of metropolitan cities) would accelerate the availability of information related to the metropolitan tax base sharing program, also known as fiscal disparities.

There is a separate but similar tax base sharing program in effect in northeast Minnesota known as the Iron Range Fiscal Disparities Program.

Information on the annual contributions and distributions from the fiscal disparities program is needed to allow cities to understand how much of their property tax levy will be covered by the metropolitan pool and how much will be borne by local taxpayers, and also to allow the calculation of the property tax impacts for commercial and industrial property owners.

In addition to compiling the fiscal disparities information and making it available as early as possible to affected cities, the proposal includes a two-week delay in the date by which a city is required to notify the county. Under current law, cities and counties must certify their proposed levy by Sept. 15. Under the proposal, cities and counties would have until Sept. 30, which is the date by which school districts must certify their preliminary levy.

If you have thoughts on how this change in the proposed levy certification date would impact your city—either positively or negatively, please forward comments to Gary Carlson.

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