ABSTRACT
This Chapter discusses alternative approaches used to address fiscal disparity - differences in revenue-raising capacity among local governments that are a product of the type of development that occurs. Two model statutes are presented: (1) regional tax-base sharing legislation, by which the growth in commercial, industrial, and high-value residential components of the regional property tax base is shared among local governments; and (2) a statute permitting a voluntary intergovernmental agreement among two or more units of local government to create a joint economic development zone. The contracting governments negotiate which public services and facilities are to be provided in the area that is to be included in the zone, and which tax and other revenues that result from commercial, industrial, and other development will be shared, and in what amounts or proportions.
The Chapter also contains model legislation for redevelopment, tax increment financing, and tax abatement. It includes a model law for designating agricultural districts, special areas where commercial agriculture is encouraged and protected. Land within such areas is then assessed at its use value in agriculture rather than its market or speculative value, a concept called “differential assessment.” The Chapter concludes with a research note on public school finance and its relationship to planning and development. The note was prepared by Prof. Michael Addonizio of Wayne State University.
