Minnesota state personal income tax impacts

Follow

ECONorthwest

• December 07, 2010 03:43

All, I am running an impact analysis of nursing homes in Minnesota (#398). The state personal income tax results appear to be quite low. For a $1 million change in final demand for #398, I am getting $1,925 in state personal income taxes. (According to the Minnesota Dept. of Revenue, personal income tax rates range from 5.35% to 7.85%.) I ran a similar analysis in 2008 using 2007 data and came up with approximately $21,300 in state personal income tax revenues per $1 million change in final demand. Can you please review and confirm? Thanks, AJ

0

• 

  DougO

  • December 07, 2010 05:00

  I used the state model and got ~24k for 2007 and ~27k for 2008.

  0

  Comment actions Permalink
• 

  ECONorthwest

  • December 08, 2010 03:24

  I'm using recently purchased 2009 data for Minnesota. The type of activity is an industry change for sector #398. I posit $1 million in industry sales using 2010 as the event year with an RPC=100%. I get 19 jobs, $524,448 employee compensation, $3,136 proprietor income in the Setup Activities window. Also, I built the model using the default procedures and trade flows method. Can you please verify that the data I'm using is OK?

  0

  Comment actions Permalink
• 

  ScottL

  • December 08, 2010 04:06

  Your direct if fine. We are checking into the lower tax value.

  0

  Comment actions Permalink
• 

  ECONorthwest

  • December 09, 2010 02:26

  Any update on the lower tax problem? AJ

  0

  Comment actions Permalink
• 

  ScottL

  • December 09, 2010 02:47

  Its being fixed. There was an issue with the raw census data for state tax. They are going through the data now. Should have an update soon.

  0

  Comment actions Permalink
• 

  DougO

  • December 09, 2010 02:50

  Yes, it is off by about a factor of 10. We will be rerunning the estimates using the REIS estimates instead of the Census estimates for state income tax. Should have it done by tomorrow pm or Friday morning.

  0

  Comment actions Permalink
• 

  DougO

  • December 10, 2010 03:32

  It's fixed and we have finished testing, we are currently repackaging. I expect you will receive an e-mail asking you to re-download the data tomorrow. Thanks for bringing it to our attention.

  0

  Comment actions Permalink
• 

  DougO

  • December 11, 2010 03:04

  The zip code files aren't ready you, but you should be able to re-download your order to get the updated files. Thanks again. The general e-mails with the notice will go out on Monday.

  0

  Comment actions Permalink

Please sign in to leave a comment.