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Effects of TIF on Local Governments' Tax Bases

County officials calculate property tax rates by dividing a local government's levy by its taxable net tax capacity. Taxable net tax capacity equals total net tax capacity, less power line net tax capacity, fiscal disparities contributions, and net tax capacity captured by tax increment financing (TIF).

In 2024, the statewide total of local net tax capacity was $11,826,855,122. Taxable net tax capacity was $10,995,106,891, and TIF-captured net tax capacity accounted for $245,601,554 of the deductions from total net tax capacity. This amount represents a little more than 2 percent of local governments' statewide total net tax capacity.

The amount that TIF reduces each local government's total net tax capacity varies across the state. The tables below display each county and first-class city's total local net tax capacity, its TIF-captured net tax capacity, and the percent of its total local net tax capacity captured by TIF.

Each county has a range between zero and 3.5 percent of its total local net tax capacity captured by TIF, except Ramsey which has six.

County Total Local Net Tax Capacity TIF-captured Net Tax Capacity TIF-captured Net Tax Capacity as a Percent of Total Local Net Tax Capacity
Aitkin 55,792,789 42,923 0.1%
Anoka 610,736,227 21,453,587 3.5%
Becker 91,660,221 753,409 0.8%
Beltrami 59,289,755 66,338 0.1%
Benton 54,411,248 429,921 0.8%
Big Stone 17,577,491 25,431 0.1%
Blue Earth 132,590,342 1,775,545 1.3%
Brown 52,610,170 236,133 0.4%
Carlton 50,951,019 258,946 0.5%
Carver 235,391,706 4,351,624 1.8%
Cass 128,359,266 51,472 0.0%
Chippewa 34,263,947 46,149 0.1%
Chisago 99,008,824 1,014,778 1.0%
Clay 95,520,699 1,463,210 1.5%
Clearwater 26,130,513 119,618 0.5%
Cook 28,028,078 -- 0.0%
Cottonwood 53,202,328 579,324 1.1%
Crow Wing 207,280,129 1,279,233 0.6%
Dakota 839,949,259 18,720,907 2.2%
Dodge 47,457,812 338,602 0.7%
Douglas 91,839,295 1,915,166 2.1%
Faribault 48,214,742 45,891 0.1%
Fillmore 48,433,493 181,680 0.4%
Freeborn 56,677,273 699,545 1.2%
Goodhue 106,652,385 774,335 0.7%
Grant 21,926,615 21,608 0.1%
Hennepin 3,033,272,047 82,141,027 2.7%
Houston 28,174,397 159,422 0.6%
Hubbard 64,485,981 347,478 0.5%
Isanti 60,460,977 563,405 0.9%
Itasca 92,104,832 951,715 1.0%
Jackson 47,588,104 227,302 0.5%
Kanabec 22,856,635 126,503 0.6%
Kandiyohi 83,604,248 715,548 0.9%
Kittson 18,685,817 669 0.0%
Koochiching 16,716,319 -- 0.0%
Lac Qui Parle 26,147,247 13,342 0.1%
Lake 32,647,223 -- 0.0%
Lake of the Woods 9,526,710 42,253 0.5%
Le Sueur 59,282,881 241,011 0.4%
Lincoln 23,499,329 103,991 0.4%
Lyon 60,400,008 295,107 0.5%
McCleod 60,821,292 566,287 0.9%
Mahnomen 10,546,076 3,127 0.0%
Marshall 36,138,821 54,266 0.2%
Martin 64,951,247 99,613 0.2%
Meeker 48,873,260 2,376 0.0%
Mille Lacs 37,605,037 178,323 0.5%
Morrison 52,766,908 567,663 1.1%
Mower 72,922,556 542,527 0.7%
Murray 46,298,367 24,418 0.1%
Nicollet 60,897,146 1,811,468 3.0%
Nobles 66,875,608 307,073 0.5%
Norman 24,057,583 77,548 0.3%
Olmsted 310,101,722 10,036,502 3.2%
Otter Tail 158,620,189 1,660,984 1.0%
Pennington 22,408,141 732,291 3.3%
Pine 50,957,051 178,933 0.4%
Pipestone 30,316,548 19,572 0.1%
Polk 72,698,709 209,171 0.3%
Pope 36,171,959 238,701 0.7%
Ramsey 885,504,585 53,970,470 6.1%
Red Lake 11,354,923 -- 0.0%
Redwood 64,287,082 112,414 0.2%
Renville 66,449,509 71,795 0.1%
Rice 102,945,128 1,418,978 1.4%
Rock 40,516,954 128,206 0.3%
Roseau 22,017,102 233,444 1.1%
St. Louis 285,422,066 4,110,683 1.4%
Scott 326,004,404 5,339,889 1.6%
Sherburne 165,783,214 848,574 0.5%
Sibley 43,566,762 102,530 0.2%
Stearns 235,177,686 2,783,575 1.2%
Steele 67,134,131 2,040,993 3.0%
Stevens 23,537,484 114,355 0.5%
Swift 33,237,460 34,688 0.1%
Todd 40,257,966 467,125 1.2%
Traverse 20,634,478 -- 0.0%
Wabasha 43,753,772 263,819 0.6%
Wadena 19,095,805 208,989 1.1%
Waseca 39,329,237 97,985 0.2%
Washington 599,318,933 8,557,381 1.4%
Watonwan 30,737,641 58,836 0.2%
Wilkin 28,606,469 23,330 0.1%
Winona 68,685,102 375,639 0.5%
Wright 285,160,824 4,059,486 1.4%
Yellow Medicine 40,899,804 290,442 0.7%

The first-class cities diverge in the amounts and percentages of their total local net tax capacities that are captured by TIF. A table displaying those amounts and percentages is below.

City Total Local Net Tax Capacity TIF-captured Net Tax Capacity TIF-captured Net Tax Capacity as a Percent of Total Local Net Tax Capacity
Duluth 114,862,631 3,887,021 3.4%
Minneapolis 839,835,591 20,407,004 2.4%
Rochester 218,195,430 9,828,624 4.5%
Saint Paul 419,169,637 32,977,680 7.9%

August 2025