Property Tax Estimates
As I understand it, tax impact estimates are proportional to the output impacts (based on the aggregate relationship between taxes and output in the base year data). This seems to be reasonable for those taxes that are imposed on flows (e.g., retail sales); however, isn't it somewhat problematic to assume that property taxes, which are imposed on a stock--the taxable value or real or personal property--are proportional to changes in "activity"--whether measured as gross sales, income, gdp, etc.? I would think caution should be assumed in using the estimated property tax impacts.
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Hello, Yes, taxes that are imposed on stocks, most notably property taxes, are much less likely to change (at least at the same rate – one could make arguments about changing tax base values; additionally, new construction is more likely to have an effect on property taxes than new retail sales, for example) as a result of changes in activity levels. The property tax impacts reported in IMPLAN, both from TOPI and Personal Taxes, would best be thought of as a share of the taxes paid by the industries & institutions affected by an initial activity level change. Since the IMPLAN tax impact report distinguishes among different types of tax revenue, users can consider only those types of taxes that make sense in the context of their analysis. In general, IMPLAN data reflect locally-specific collection rates by type of tax, and industry-state-specific amounts of total IBT paid (IBT is then divided among the types of tax based on local data, but is an average across all industries). Accordingly, it can be beneficial to use your own estimates of direct taxes, which would reflect industry specifics, e.g. relatively more sales tax from retail operations, but the Indirect and Induced we feel are fairly good estimates since those impacts occur across a range of industries. Here is some additional information, let us know if you have any additional questions, or if we can help further. IMPLAN Tax Impact Calculations: http://implan.com/index.php?option=com_content&view=article&id=900&Itemid=1706 Calculating Savings & Tax rates for Households: http://implan.com/index.php?option=com_content&view=article&id=464&Itemid=1706 Specialty Tax Types and IMPLAN: (incomplete) http://implan.com/index.php?option=com_content&view=article&id=476&Itemid=1706 Tax Impacts of Labor Income Changes: http://implan.com/index.php?option=com_content&view=article&id=256&Itemid=1706 Understanding Corporate Profit Tax: http://implan.com/index.php?option=com_content&view=article&id=191&Itemid=1706
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