Tax on Production and Imports: Property Tax
I completed an economic impact report using IMPLAN and my client's client had a very specific question about the results from the "state and local tax impact breakdown" output from the report. Specifically, they want an exact explanation of how tax on production and imports: property tax is calculated. I explained to them generally but they insisted on having the explanation from IMPLAN. So, my question is, can you give me a source or an explanation I can quote of the general explanation of how property taxes are calculated? These people are not economists, they are not looking for a crazy I/O explanation of this, just a general explanation from IMPLAN as to how the report generates that number. Can you help me with this please?
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The biggest source of confusion on this tends to arise because this Taxes on Production & Imports: Property taxes includes both the taxes on commercial and private properties- in other words all real estate taxes are tied up in this. This results from the BEA (Bureau of Economic Analysis) classification of home ownership as an Industry for the purposes of being able to count the value of home ownership to national GDP. Since home ownership is classified as an imputed Industry by BEA and thus by IMPLAN, both types (commercial and residential) are rolled together into the Taxes on Production & Imports value. This often leads to the question of what Personal Property taxes are. These are defined as: Household personal property tax payments to State and Local governments. Dividend, interest, and rental income of persons with capital consumption adjustment are sometimes referred to as property income. So these include taxes on personal income and in states where applicable luxury items (such as a yacht tax). In terms of the calculation itself, the data is based on actual collected data for collected taxes for each Industry for each region, and while we have total Taxes on Production & Imports by Industry, the distribution of how these are paid in the tax impact report will be the same regardless of the which Industry is impacted, but is still regionally specific. So if the concern is around the distribution of taxes to this component, you may need to adjust according to local knowledge. We hope this helps to address your concerns, but if not, if you could please help us to understand more about the nature of the clients concern, we'd happy to dig into it further. -Thanks!
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