Analysis Level
Required for all levels

Definition
This is the method by which sales taxes accrue to the jurisdiction, i.e., (1) by where money is spent, (2) a regional formula, or (3) both methods. If no sales taxes are collected by the jurisdiction, then pushing the "No Sales Taxes" button will tell LOCI not to include sales taxes in the analysis.

How its Used
Several different methods are used to distribute sales taxes. One method is simply on the basis of where the money is spent, i.e., if a sale is within the city limits, then the city gets the revenue. Another method is where sales taxes collected within a region (usually a county) are distributed according to a formula where each jurisdiction receives a specified of sales taxes collected within the formula jurisdiction. A third method is a combination of the first two with part being where the money is spent, and part being from a formula.

How to Estimate it or Where to Get It
Local government financial officers are good sources for this data.

Analysis Level
Required for all levels

Definition
Effective buying income (EBI) is defined as personal income less personal tax and non-tax payments, such as social security and various fines and penalties. It is also known as disposable income.

How its Used
Used to estimate the sales tax expected from purchases by resident and non-resident employees of the facility. Local EBI is for the political jurisdiction only, regional EBI is for contiguous counties and the county being analyzed or where the city being analyzed is located, and state EBI is for the whole state.

How to Estimate it or Where to Get It
The source for this data is the "Survey of Buying Power," published by Sales and Marketing Management. It can be found on their web site at http://www.salesandmarketing.com/smm/index.jsp but you must subscribe to access the data.

Descriptive Name
Total Retail Spending

Analysis Level
Required for all levels

Definition
Total annual retail sales for the jurisdiction, the region, and the state.

How its Used
Used to estimate the sales tax expected from purchases by resident and non-resident employees of the facility. The region is defined in the same manner as for EBI. The analyst must therefore separate the retail spending in the city from the county using other information, such as data on the proportion of sales tax disbursed, from the state Department of Revenue.

How to Estimate it or Where to Get It
The source for this data is the "Survey of Buying Power," published by Sales and Marketing Management. It can be found on their web site at http://www.salesandmarketing.com/smm/index.jsp but you must subscribe to access the data.

Analysis Level
Required for all levels

Definition
This is the percent of sales tax collections, allocated by a regional allocation formula, e.g., between a county government and the municipal governments within the county, going to the jurisdiction under study.

How its Used
Used if sales taxes are allocated by a regional formula to determine how much of the sales tax revenues generated in the region (usually a county) are collected by the jurisdiction under study.

How to Estimate it or Where to Get It
Local government financial officers are good sources for this data or possibly the state's revenue department if they collect sales taxes and then distribute to local jurisdictions.

Descriptive Name
Percent by Allocation Formula

Analysis Level
Required for all levels

Definition
Percent of total sales tax collections to be allocated by an allocation formula.

How its Used
This is used only when sales taxes are distributed on the basis of both a regional formula and where the money is spent. For example, assume there is a 2% sales tax for the city being analyzed, 1% goes entirely to the city, and the other 1% is allocated between the city and the county based on population. Then this percentage would be 50%. Have of the sales tax collections would be divided based on the Percent to Jurisdiction percentage, and half would go entirely to the city.

How to Estimate it or Where to Get It
Local financial officers would be a good source for this data or possibly the state's revenue department if they collect sales taxes and then distribute to local jurisdictions.