Property Tax in IMPLAN (Households State and Local
I'm wondering how I can best understand the tax report data I'm seeing to address a comparison with the local property taxes I know exist in the region. I'm pretty sure I'm comparing something that shouldn't be compared because the ratios or payments that I think I'm pulling out of the IMPLAN tax report for that estimate is very low.
My thinking is that if this activity creates a job for one year and that job is somewhere in the state the tax payment associated with the property tax from the housing of the worker should be what I am looking at in the report. For giggles let's assume that the worker owns an average house in the state and pays the average property tax. For the state I'm working with the property taxes that I would expect to see for one year would be around $3,000 for the household (I know this is a low and conservative estimate for the area I'm working on.) Let's assume that 2 jobs exist for this household so each person is responsible for half the property tax payment. $1,500 per job. The income for the jobs I'm modelling is above average so it would be possible that one job covers the total housing cost but splitting it seems generous towards getting something out of IMPLAN that I can work with.
The value that I see coming from the total tax effect report is about $40 per job. This is a long ways from the $1,500 I was hoping to see. I must be either conceptually thinking about something in the wrong way here or need to abandon that line on the IMPLAN tax report for use in the analysis.
Thanks for any guidance and suggestions.
Dale
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IMPLAN Support******This response is incomplete. Please see next post below for additional response.******* Hi Dale, What line in the tax impact report are using? We are guessing based on your description that you are looking at the Household column and Personal Tax: Property Tax row. This is not real estate property taxes but rather personal property/luxury item taxes. As a result of BEA using Sector 441 (536 Sectoring) and 361 (440 Sectoring) to make home ownership a imputed Industry for the purpose of counting its value towards GDP, both commercial and residential real estate taxes are part of the TOPI Property Tax. One way to approximate the value of payments to residential property tax would be go into the Detail Results> Value Added> TOPI form and note the total TOPI payments and the payments to TOPI from Sector 441/361 (Sector scheme dependent). From these two values you can create a ratio of 441 payments to TOPI over total TOPI and then apply this ratio to the TOPI: Property Tax line. If you are looking at the TOPI: Property Tax column and seeing this or if this doesn't address your question could you tell us the year of your data and the geographies in your Study Area? Regards, IMPLAN Staff0 -
IMPLAN SupportHi Dale, We apologize but we realized we missed an element in our earlier description. Since the same TOPI splits apply to all Industries the TOPI payments will be split even if that Industry may not pay that tax type. So the residential share, would take the residential industry TOPI share of total TOPI impact and apply that not just to property tax impact, but also to any other TOPI you think the 'residential industry' doesn't pay (e.g. sales tax). You would then add these shares together for residential property. Alternatively, if you think all TOPI from the residential industry is property tax, then just use the total TOPI impact of that sector as the property tax impact. We apologize for this omission. Regards, IMPLAN Staff0
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