Municipalities can work together to plan for large developments that span multiple municipalities through the use of tax sharing districts.  Tax-sharing districts are inter-municipal agreements to distribute the revenue from a designated area according to a mutually agreeable formula.  The land use advantage of these agreements is that it allows municipalities to plan for large sites that span multiple municipalities without regard to municipal boundaries.  Participating communities will have more flexibility to plan for growth where it makes sense from a land use perspective, rather than seeking to maximize tax revenue generation within the municipal boundaries.  

Massachusetts has applied regional tax sharing solutions to land use and economic development challenges both at Fort Devens and the South Weymouth Naval Air Station.   In both cases, special legislation created the governance structures for communities to plan together and to share the benefits of large-scale development on those redevelopment parcels.   

Cross-municipal development sites and proposals large enough to merit a tax sharing district are not common in Metro Boston.  However, they do exist and MAPC should be ready to support the use of this innovative tool to support sustainable planning on these sites.  MAPC should identify sites where such a tool might be applied and conduct outreach to the appropriate municipalities. 

15.a    MAPC should inventory potential tax-sharing districts and conduct outreach to appropriate municipalities

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