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Module #3 <br />Another aspect of economic benefit is Tax Impact. <br />In making quick assessments of Tax impact, it is easier <br />to use only the direct plus indirect values. In the case <br />of a much smaller airport than the one previously <br />discussed, assume this total to be $3,000,00O..A ssr-rie <br />that the local tax subsidy is $50,000. The 1 of.. <br />this money that ends up as property tax is typically <br />about one percent. Let's use only the Airport Economic <br />Impact figure for simplic*- <br />If a.state. sales tax is in place, the portion of the <br />direct and indirect total which will be paid as sales tax <br />is typically about one -tenth of one percent for each one <br />percent of sales tax. If, for example, the sales tax is <br />five percent, the portion of the direct and indirect total <br />which will be paid as sales tax is five times one -tenth <br />of one percent, or one half of one percent. <br />.State income taxes and other miscellaneous taxes <br />can easily -reach three - fourths of one percent each. <br />Returning to this example, the Tax Impact would <br />be calculated as follows: <br />Tax type Amount <br />Property tax (1% of $3,Q00,000) _ ($30,000) <br />Sales/Use (0.5% of $3,000,000) _ ($15,000) <br />State Income (.75% of $3,000,000) _ ($22,500) <br />Miscellaneous ($22,500) <br />Total Tax Contribution ($90,000) <br />Compared to the $50,000 in -tax support,--this is a - <br />favorable_balance and indicates a very strong return <br />on taxpayer investment. Keep in:mihd, too; that these <br />figures do not include federal -taxos. Inclusion of <br />federal taxes as well as the tax effect of induced impact <br />are complexities well beyond the -scope of this <br />simplified approach. <br />For more exacting formulas exploring- tr�nsporta- <br />tion benefits, the effects of increased,aviation activity <br />and -aviation's- stimulation of business, contact; the <br />nearestFAA Regional Office fora copy of Measicring <br />the Regional Economic Significance of Airports <br />Existing support groups nationwide'have us* ed <br />economic impact as the pivotal weapon in their battle <br />to save America's airports. ' <br />Finally, publish and distribute the results through- <br />out the community, making sure the information gets <br />the widest possible circulation. Prepare, preferably <br />with the aid of a free -lance writer �or newsman, a <br />complete final report and a summary highlighting the <br />dramatic contributions of the airport. The full study <br />should be available to all who want a copy. Summary <br />pamphlets should by widely distributed throughout <br />the community. You may elect to create a visual <br />program, using slides and/or overheads, to enhance <br />the material when presented to an interested group. <br />Again, help may be available from.a nearby high school <br />or university photography club. <br />If possible, do not allow the study to become out of <br />date. A periodic review should -be conducted and <br />material adjusted as changes occur. A new industry, <br />increased flight schedules, a new operator —all these <br />reflect the continuing economic contribution of aviation <br />to the community. <br />The Direct Impact Formula was developed by <br />EckroselGreen Associates, an airport consulting firm <br />in Madison,- Wisconsin. Theirforniula is endorsed by <br />the National Association of State Aviation Officals <br />(NASAO). By adding the AOPA Intinerant Aircraft <br />formula to the equation, ¢Total Economic impact is <br />determined. <br />3 -4 <br />