Tax Abatement

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4 comments

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    IMPLAN Support
    Hello, Since IMPLAN is a production Model and typically tax dollars aren't assumed to generate local production, this type of analysis is a little difficult to perform. Perhaps, so that we could give you the best methodology for looking at this, you could tell us what it is you are trying to determine with your impact problem. For example are you trying to determine what the potential loss of sales tax revenue will be? Or are you trying to understand how not having that revenue would affect government function? We apologize but without a little better understanding of what you are trying to assess, it is difficult for us to advise you as to, how or if, you can use IMPLAN to help you. Best regards, IMPLAN Group Staff
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    btrichman
    Thank you for the reply. What I am trying to make sure does not happens is that i do not want to overestimate the amount of tax revenue generated by my expenditures. Therefore, if i am spending the million dollars on concrete at a state level but this purchase is not subject to sales tax i want to make sure that the taxes generated by this expenditure do not include this sales tax. Would it be easier if i modeled this expenditure with a sales tax included, X percent, and then deduct this percent from the generated tax impacts. Specifically, could i say my initial expenditure is $1M * 1.07 = $1,070,000 to account for sales tax and then subtract the $70,000 from the state taxes generated? thanks
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    btrichman
    Was my previous post unclear? Would it be easier to call someone at your facility--though i tried and was directed to this forum? Time is of the essence and i am trying to get this turned around as quick as possible. Please advise. thank you.
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    IMPLAN Support
    Hello, The issue with the method you describe is that your tax rate isn't' associated to anything in the background of IMPLAN, so that may actually overestimate the effects to all the other factors. The closest way to model this , and only with a slight underestimation, is to remove the that line item in the Tax Impact. Unfortunately there is no way to isolate this from the Social Accounting Matrix. Please let us know if you have additional questions. IMPLAN Group Staff
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