Description

This page allows the user to choose a rate structure for calculating the half-cent local sales tax. Using the option titled "Choose Rate Structure," the tax rate can be set as a "Constant Rate" to be used throughout the simulation period. The default is half-cent (0.50¢), and it can be altered via the sliding bar on the left-hand side of the page. One may also use a variable rate structure by changing the "Choose Rate Structure" option to "Variable Rate." This would highlight the title on the right-hand side of the page.

Again, the default (and current) rate is half-cent (0.50 ¢), but this value may be altered for each year of the simulation by entering the rate in the boxes below the bars on the right-hand side of the page.

Note: While using either of the rates, make sure that the correct option has been selected under the "Choose Rate Structure" option. When the simulation is reset, the rate structure reverts back to the constant rate. To run a new simulation using the variable rate, the "Choose Rate Structure" option would have to be changed again.

Description

The Hillsborough County half-cent local sales tax is calculated for future demand as well as the existing base. The half-cent sales tax per PEP (base of population plus employment) comes out to be around $45. This is used with the cumulative demand (growth) and base demand (existing base) to calculate the revenues for the existing base and future growth.

Just like the ad valorem revenue, half-cent sales tax can either be calculated as a constant rate for the entire simulation period or as a variable rate on a yearly basis. Half-cent sales tax switch, initial half-cent sales tax, and half-cent local sales tax constants are used to allow this capability.

Assumptions Used

• Cumulative Demand - See Demand Base

• Base Demand - See Demand Base

• Half-Cent Sales Tax per PEP = $45 per PEP (population plus employment)
  Source: Hillsborough County City-County Planning Commission
  
  

Equations Used

• Hillsborough County Half-Cent Local Sales Tax Annual Revenue from Growth =
  (IF (Half-Cent Sales Tax Switch = 0, Half-Cent Local Sales Tax [1,2], LOOKUP (Half-Cent Local Sales Tax, YEAR (TIME) - 2007, 2)) / 0.5<<¢>> x Half-Cent Sales Tax per PEP x Cumulative Demand[3,1] x 1<<pep>>) / 1<<yr>>

• Hillsborough County Half-Cent Local Sales Tax Annual Revenue from Existing Base = (IF (Half-Cent Sales Tax Switch = 0, Half-Cent Local Sales Tax [1,2] - Initial Half-Cent Sales Tax [1,2], LOOKUP (Half-Cent Local Sales Tax, YEAR (TIME) - 2007, 2) - LOOKUP (Initial Half-Cent Sales Tax, YEAR (TIME) - 2007, 2)) / 0.5<<¢>> x Half-Cent Sales Tax per PEP x Base Demand[3,1] x 1<<pep>>) / 1<<yr>>