Tax Impact Question


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    IMPLAN Support
    Hello Laura, How your region treats property tax will be specific to your region. Our Tax Impact report is built on information from the US Census Bureau's collection of Survey of State and Local Government receipts and expenditures data (Annual Survey of State and Local Government Finances). If your State & Local Government Tax impact includes TOPI: Property Tax, then the Census survey reports receipt of property tax. As part of a 2003 NIPA revision, Indirect Business Tax (IBT) was modified to Taxes On Production and Imports Net Subsidies (TOPI). Property Taxes are a portion of the TOPI paid by industries. If 3% of an industry's total Output goes to TOPI, then of the total Output impact associated to the industry, 3% will be associated to TOPI. How the total TOPI amount is split amongst the different TOPI categories (sales tax, property tax, etc.) is based on the regional receipts mentioned above. "The distributions of these Value Added impacts (by component) amongst the types of tax are not industry specific. The distribution would be the same whether it was computers, tourism, tobacco, or forest products. Logically, forest products or mining would have a higher proportion of severance taxes compared to computers or tobacco, but that would not show up in the tax impact report. It is up to the analyst to make adjustments as necessary." You can see TOPI percentages of Output by industry by navigating to Social Accounts > Balance Sheets > View By: Industry Balance Sheets > Value Added tab. Regards, IMPLAN Staff
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