Fiscal disparities is a tax base sharing feature of the property tax system that was created in 1971 for the seven metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. It was adopted in 1996 for the taconite relief area, known as the Iron Range Fiscal Disparities program, which affects the counties of Aitkin, Cook, Crow Wing, Itasca, Koochiching, Lake, and St. Louis.
Under fiscal disparities, each taxing jurisdiction contributes a portion of its net tax capacity based on growth in the commercial/industrial tax base of the jurisdiction. This contribution is subtracted from the total net tax capacity of the jurisdiction when determining taxable net tax capacity. When the pool of contributions is redistributed, each jurisdiction may receive more or less than it contributed, making it a net beneficiary or a net contributor.
Fiscal disparities is a tax base sharing feature of the property tax system. Under fiscal disparities, each taxing jurisdiction in a defined area contributes a portion of its net tax capacity to an area-wide tax base. Minnesota has two defined fiscal disparities areas: the Metropolitan and the Iron Range. This portion of net tax capacity, called the fiscal disparities contribution net tax capacity, represents the growth in the commercial/industrial tax base since the base years of 1971 for the Metropolitan area and 1996 for the Iron Range area.
This contribution net tax capacity is subtracted from the total net tax capacity of the jurisdiction when determining taxable net tax capacity. With fiscal disparities programs, each jurisdiction will receive the amount for which it levies, but when the pool of contributions is redistributed, each jurisdiction may receive more or less than it contributed, making it a net beneficiary or a net contributor.
The fiscal disparities program has two levies: a contribution levy and a distribution levy. The data show the distribution levy. The tax capacity contributed to the fiscal disparities pool is the basis for determining property tax dollars for local governments. These property taxes, also known as the distribution levy, are calculated for each local government by multiplying its distribution value by its prior year tax capacity rate. The distribution levy represents the amount of each local government's certified levy raised through the fiscal disparities program.
The fiscal disparities contribution levy is equal to the fiscal disparities contribution net tax capacity multiplied by the fiscal disparities area-wide rate.
To qualify for class 2c managed forest land, the property:
Must have at least 20 eligible acres of forested land, but no more than 1,920 acres statewide per taxpayer
Must have a forest management plan registered with the Department of Natural Resources that was prepared or updated in the last 10 years
Cannot be used agriculturally
Cannot include property that is enrolled in the Sustainable Forest Incentive Act (SFIA) program, Conservation Reserve Program (CRP), Conservation Reserve Enhancement Program (CREP), Reinvest in Minnesota (RIM), or the Green Acres program
The class rate for 2c property is 0.65% of its taxable market value.
Fully Taxable Value refers to all taxable value of a property that is not subject to Job Opportunity Building Zone (JOBZ) or any other exemptions. When no such exemptions exist for a property, fully taxable value would match the net tax capacity (NTC) or Taxable Market Value (TMV).