Fiscal Impacts

Hi David. Thank you for your post! The data that IMPLAN uses is historical where as it looks back in time as to what happened in the economy. For example, our current data year is 2012, which will give you a picture as to what happened in the 2012 economy. IMPLAN does not know that there is a scheduled tax decrease down to 4.9% by 2017; IMPLAN will not account for this. Unfortunately there is not away to adjust the tax rates in IMPLAN because our data is actually calculated from total tax receipts. The tax impact report estimates are based on the distribution of all IBT (Indirect Business Taxes) collected by all sectors as described by the Census of Government Finances for the region. However, if you know certain information about how much in dollars will the reduction in taxes mean for the state, then IMPLAN can assist in modeling this tax change. The lowest level of detail we sell is by zip code. If you were interested in the fiscal impacts of a city, you would need to construct the city by the zip codes that are comprised of it. However, the disclaimer that I want to mention is zip codes are not a functional economy. Since zip codes are small in scope, you typically do not see production or labor income dollars being spent in that region; you will tend to have a lot of leakage. If I am understanding your question properly, in order to get the fiscal impacts of both the county and state, you can run your impact at either the state level or county level and model will generate estimates of State and local tax receipts and federal taxes as well. Thanks!

Hi David. Thank you for your post! The data that IMPLAN uses is historical where as it looks back in time as to what happened in the economy. For example, our current data year is 2012, which will give you a picture as to what happened in the 2012 economy. IMPLAN does not know that there is a scheduled tax decrease down to 4.9% by 2017; IMPLAN will not account for this. Unfortunately there is not away to adjust the tax rates in IMPLAN because our data is actually calculated from total tax receipts. The tax impact report estimates are based on the distribution of all IBT (Indirect Business Taxes) collected by all sectors as described by the Census of Government Finances for the region. However, if you know certain information about how much in dollars will the reduction in taxes mean for the state, then IMPLAN can assist in modeling this tax change. The lowest level of detail we sell is by zip code. If you were interested in the fiscal impacts of a city, you would need to construct the city by the zip codes that are comprised of it. However, the disclaimer that I want to mention is zip codes are not a functional economy. Since zip codes are small in scope, you typically do not see production or labor income dollars being spent in that region; you will tend to have a lot of leakage. If I am understanding your question properly, in order to get the fiscal impacts of both the county and state, you can run your impact at either the state level or county level and model will generate estimates of State and local tax receipts and federal taxes as well. Thanks!