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Simulating the Effects of Tax-Base Sharing |
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MARC often simulates the effects of establishing a tax base sharing system like the Twin Cities Fiscal Disparities Program in its regional and state reports. For the national report, the tax base sharing simulations were designed to show the effects on the intra-metropolitan distribution of local tax capacity of pooling 10% of each jurisdiction's tax capacity (from all bases combined) into a region-wide pool and redistributing this capacity back to municipalities based on a formula like the one employed by the Fiscal Disparities Program. With this distribution formula the relative distribution that a municipality receives is determined by the ratio of the metropolitan area average tax capacity per household and the municipality's tax base per household.  |
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©2002-2008 Ameregis Corporation
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