Tax Base Sharing: An Assessment of the Minnesota Experience

Abstract

Abstract In 1971 Minnesota enacted tax base sharing legislation designed to share a proportion of all commercial-industrial growth occurring within the Twin Cities metropolitan area among all local governments in the area. In addition to reducing the inequities caused by the existing distribution of resources within the metropolitan area, the tax base sharing plan is designed to stimulate a more efficient and rational pattern of metropolitan area development. The article describes how the plan works and assesses its first years of operation. The analysis suggests that in the long run the plan will lead to a more efficient pattern of development only if used in conjunction with other planning instruments.