Feasibility of Research on Metropolitan Area Tax Base Sharing and Business Development Patterns

摘要

The impact of the Minnesota tax base sharing plan on the spatial pattern of economic growth and development within the Twin Cities area, the fiscal costs to local governments of new business development, and the comparative fiscal costs of new business development in central cities, suburbs, and rural locations are examined. In exploring the impact of the Minnesota tax base sharing plan in the spatial pattern of economic growth and development within the Twin Cities area, attention is given to the problems of distinguishing between inflationary growth of the assessed valuations of existing commercial - industrial properties and the growth of assessments due to new developments. Based on interviews with local officials, the availability of data on regional development patterns is explored. Conclusions are drawn about the likely impact of base sharing on urban development, and suggestions are provided for steps HUD might take to measure and evaluate these impacts. In finding current techniques for measuring the fiscal costs to local governments of new business development deficient, an alternative conceptual model for predicting costs is developed. The report concludes with a brief evaluation of the fourth year of the operation of tax base sharing. A series of tables summarizes the distributive impacts of base sharing in 1977.