Cable franchise fees in SL tax impacts?

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.

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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.

     

    Generation and Interpretation of IMPLAN's Tax Impact Report

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