Sales tax

My study area is just the city. So the output which is labeled "Tax Result - State/Local" Is it just share that goes to City and not the full 9% state tax?

ok.. did some more research and looks like IMPLAN result is based on multipliers developed from NIPA table 3.5 for specific sector. Also this industry(sector 161) sells from one business to another business and not to end user like retail, so it was probably not right to take 9% of revenue as sales tax. Am i on the right track? Then why am i getting value for Direct - Sales tax. Is it because IBT-Sales tax includes gasoline and utility tax as shown in NIPA table 3.5?

Hi Leo, What Sector are you using, it looks from the posts provided below that you are using Sector 115. If that is the case, then you are correct that your taxes would be based, not on retail sales but on the taxes charge by State & Local Governments on the production of Sector 115. To capture the impact of sales tax to Final Demand at the retail you would need to apply Margins to Sector 115 (Event Options> Edit Event Properties>Margins> Yes; https://implan.com/v4/index.php?option=com_multicategories&view=article&id=567:567&Itemid=71). For this you will also want to apply the Local Purchase Percentage so that you are not counting all production, wholesale, transport and Retail as local impacts. You can adjust the Retail to 100% local if that is accurate for your analysis in the Event Options> Edit Event Properties>Margins> Edit screen. You will always see Direct taxes associated to any Industry Change Event because there will be taxes paid by the industry on it's operations. Please let us know if you are looking at a different Sector, if this does not answer your question, or if you have any additional questions. Thanks!

No.. i am doing industry change on sector 161.

Hi Leo, Unfortunately Sector 161 is a Sector that doesn't have Margins associated to it. It sounds like; however, you are dealing with Household purchases of concrete and are trying to assess the sales tax associated to this. As described earlier the easiest way to do this is to use the Retail Sector, in this case it would be 323. Using this Sector you will see the retail sales tax collected on items sold through Home Improvement and Garden Stores. If you wanted the more detailed background you could use Sector 163 to approximate Margins for Sector 161. To do this would follow the procedures we discussed in the previous post (i.e. build an Event for 163, Event Options> Edit Event Properties>Margins> Yes; Event Options> Edit Event Properties>Margins> Edit screen) and copy the Margin splits for the Edit screen. You would then manually apply these Margins to your Sector 161 value and build and Event for each split of the Margins (i.e. 161, transport Sectors, 319, 323) and enter in a and Industry Sales value for each based on their portion of the total retail value of the cement being sold. You would also want to be sure to set the Local Purchase Percentage to SAM Model Value for all the Events accept the retail Sector, unless you assume that the retail sales are not all local. Please let us know if you have any additional questions. IMPLAN Support Team