the transfer by the municipality fund is allocated to individual municipalities on the basis of a very complex distribution formula using a variety of objective indicators bos this not only takes account of the number of inhabitants but also corrects for differences in taxeaming capacity real estate value of dwellings and business property and external circumstances like a regional function or the social and physical structure this includes indicators for the number of households receiving social benefits the number of people from ethnic minority groups the number of young or elderly the density of addresses and the surface area of the historical centre however differences in other revenues like interest dividend or from the sale of land are not taken into account