Hi. I'm running an impact for a cable company (wired telecom, sector 427). When running an industry change impact, are franchise fees paid to local governments included in the state & local tax impact? I mean this both in principle--do these fees fit into one of the categories of local taxes, but also in practice--assuming they are, how well will the model estimate these fees specific to this industry and/or to a specific state? Thanks.
Cable franchise fees in SL tax impacts?
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Official comment
Hi Dan,
State and local franchise fees are classified as Taxes on Production and Imports: Other Taxes. As to the model’s estimation of the fees, please see the below notes regarding TOPI estimates.
- Our source data on total TOPI taxes by state and by industry are collected at a more aggregate level (approximately 90 sectors) than the sectoring scheme of IMPLAN. We distribute TOPI by state and industry to detailed industries using national data and other proxy data.
- Total TOPI taxes are industry- and place-specific, but the allocation of TOPI among its components, e.g., sales tax and property tax, is only place-specific.
- For these reasons, we recommend constructing your own estimates of direct taxes whenever possible and using the model estimates for indirect and induced tax impacts.
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