There are two types
of impacts calculated by the model.
(1) Economic Impact
Economic impact analysis examines the implications of an activity in terms of three
basic measures: output, earnings and job creation.
The model computes the impact of either an existing business (retention)
or a new business (relocation). The model provides the impact during a construction
period and during operations (if both are entered).
- Economic
impact of construction
– The economic impact of construction determines the output, jobs, and payroll supported
by the construction phase of any new building planned by the company.
Construction phase impacts are generally short-term effects (six months to
two years) related to onsite and offsite construction employment and other industries
that support the construction.
- Economic
impact during operations
– The economic impact during operations determines the output, jobs, and payroll
supported by the operations of the company.
The operational phase impacts are generally considered the long-term consequences
of a company.
(2) Fiscal Impact
Fiscal impact analysis
determines the public revenues that are generated by a particular economic activity.
The primary revenue sources (i.e. taxes and fees) of local, county, or state governments
are determined in order to examine how an activity may affect the various jurisdictions.
Fiscal impacts can be calculated for any jurisdiction requested, including the direct
impact on school districts.
Fiscal effects occur
as a result of spending by workers directly or indirectly supported by the company.
For instance, counties and cities benefit from the spending of employees on housing
and retail goods and services. Examples of these types of fiscal impacts that will
be generated include income taxes paid on wages and sales taxes paid on retail goods.
The Fiscal Impact
analysis is set up in a similar manner as the Economic Impact analysis. This portion
of the model computes the fiscal impact of either an existing business (retention)
or a new business (relocation). The model provides the fiscal impact during a construction
period and during operations (if both are entered).
(1)
Fiscal impact of construction – The fiscal impact of construction includes the direct,
indirect, induced and total impact of a new
or existing company during the construction phase (typically 6 months to two years)
in terms of sales taxes, income taxes, unemployment insurance, property tax, motor
vehicle tax, and state shared revenues.
(2)
Fiscal impact during operations – The fiscal impact during operations includes the direct,
indirect, induced and total impacts of a new or existing company in terms of sales
taxes, income taxes, unemployment insurance, property tax, motor vehicle tax, and
state shared revenues supported by the operations of the company.
The operational phase impacts are generally considered the long term consequences
of a company.
All revenue projections
are in current dollars and, thus, not inflated. The revenues are based on tax rates
entered by the user when the program was installed.
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