Higher taxes for 7 metro counties under disparities proposal

by Curtis Gilbert, Minnesota Public Radio

St. Paul, Minn. — An independent report commissioned by the Legislature shows property tax payers in Hennepin County would pay lower taxes on average if the state did away with its fiscal disparities program. But residents in six other metro area counties would see their taxes go up.

That calculation takes into account combined city, county and school district tax levies in each county.

The program is designed to spread out the commercial and industrial property tax base among local governments in the metro area.

Republican state Rep. Jennifer Loon, of Eden Prairie, says the report shows the program isn't working as well as it used to.

"Perhaps a municipality that has a lot of high-value residential property is still becoming the recipient of fiscal disparities, and so as a result, their overall property tax burden is lower for those residents. Nice for them. But I'm not sure it meets the overall goal," she said.