Local Ad Valorem Tax Rate

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gwatkins

• August 19, 2011 19:43

What is the process to input local ad valorem tax rates to the Implan system once the product is installed. Is adding local tax rates part of the installation/set up procedures for the product? Is this data easily updated when local taxing entities make their annual rate adjustments? Thank you

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  jenny

  • August 19, 2011 20:41

  It is my understanding that an ad valorem tax is a tax on Value-Added. In this case, you could just apply the tax-rate increase to your total Value-Added impact results, then add that tax amount to your direct tax impacts.

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  gwatkins

  • August 24, 2011 00:38

  Okay, so do I understand correctly that IMPLAN does not calculate $ impact utilitzing local tax rates where the rates are sales tax or property taxes or otherwise?

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  jenny

  • August 24, 2011 00:58

  All the tax data used in the tax reports is from the Social Accounting Matrix (SAM) data. There are no tax rates per se. The IMPLAN tax impacts represents the historical distribution of collected indirect business taxes for the region based on data from the Census of Government Finance. Similarly for payroll taxes and income taxes, we have estimates of overall labor income and taxes paid on those incomes. In effect, we are estimating an overall average tax rate for each of the indicators. The tax data reflects actual tax receipts for the year of your IMPLAN data. Assuming that annual rate adjustments are reflected in the Census data, they will also be reflected in the IMPLAN data.

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