Negative Indirect Business Taxes
Hi:
I am running an impact analysis on the Transport by Rail industry and I obtain negative amounts for the various indirect business taxes. Could you please explain how these amounts occur? I would like to include a statement about this in my report.
Thank you in advance and hope to hear from you soon.
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Hello Steven, While we look into your query, could you provide further detail about your model? Of specific interest: Are you using IMPLAN Online or IMPLAN Pro? What data year are you using? What are you using as your model region? What are your input values? Thank you, IMPLAN Staff -
Hello Steven, Net TOPI is negative for rail transportation in Pennsylvania according to the Bureau of Economic Analysis (BEA). Our data sources report TOPI only at the state level, so if the state value is negative or positive, that tends to be distributed to all of the counties. If you look at state-level subsidies by industry on the BEA’s webpage, http://bea.gov/itable/iTable.cfm?ReqID=70&step=1#reqid=70&step=1&isuri=1 in the “Annual Gross Domestic Product (GDP) By State” tables, it will be clear that rail transportation is subsidized to the point of having negative TOPI, meaning that subsidies > gross TOPI, so net TOPI, which is what Implan uses, is negative. Regards, IMPLAN Support -
Thank you again for your quick reply. Can you please tell me whether a zero amount for Taxes on Production and Imports (TOPI) can be presented rather than a negative amount? The explanation would be that the rail industry in Pennsylvania is subsidized and consequently a negative amount is not presented. Hope to hear from you soon. -
Please take a look at our Farm Data Procedures document.
https://implanhelp.zendesk.com/hc/en-us/articles/115009505827-Farm-Data-Procedures
The final sections regarding annual VA are the most relevant for you, and below are some additional explanations that expound on the document and relate the content to AL values.
Regarding farm sector VA calculation at the state level:- The general procedure starts with disclosing and projecting BEA OVA (Other Value Added - primarily OPI and TOPI) data, which is in BEA sectoring (which contains only a single "farm" sector).
- Disclosing: In the case of AL, the state GDP data are disclosed, so we do not need to disclose the value. The disclosed raw BEA State GDP data provide TOPI, Subsidies, and TOPI less Subsidies (which is negative for AL).
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Projecting: The disclosed values are projected based on the change in total farm output from last year to this year (total farm again as greater detail is not available from the BEA).
- Subsidies are also adjusted to account for the tendency of subsidies to decrease as farm output rises.
- Total Farm sector VA is then distributed to IMPLAN sectors using one of two methods depending on the availability of state level ERS Agriculture Resource Management Survey (ARMS) data, see linked document for more.
- Note: Alabama is not covered by ARMS
As far as a source to link to, this link is to the BEA's GDP by state interactive data. Under Annual Gross Domestic Product By State the user will find tables for TOPI, TOPI less subsidies, and subsidies. The TOPI less subsidies value for AL is negative.
https://apps.bea.gov/itable/iTable.cfm?ReqID=70&step=1#reqid=70&step=1&isuri=1 - The general procedure starts with disclosing and projecting BEA OVA (Other Value Added - primarily OPI and TOPI) data, which is in BEA sectoring (which contains only a single "farm" sector).
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