Well, you’ve had your preview of the LC’s tax return form. Now here are my tax collection notes!
I have uploaded my file that contains the city’s tax collection notes, proposed budget and department allocations, and the city’s cash register. These are blank forms that your city’s can use.
Once downloaded, go the tab that holds my tax notes. As explained here:
As you can see, I also tax my townies. I use the Hood Census feature in Sim Blender or ACR to determine the total amount of sims in the city. Subtract the amount of playables from this total, and you get the amount of townies and NPCs. Keep in mind that this will include any subhoods you may have.
In the graph, I show my tax rate information (tax rate 10%, 15% for high income), as well as deductions. Also notice that the deduction for farmers is not included. That’s because I added the deduction recently.
In the graph, I also notate mults. These population multipliers calculate how much of the townie/NPC population are in the income classes, how many are married and how many have child and elder dependents (there is no need for a farming mult since my farmers are playable).
In my hood, I speculate that 36% of the townies are low-income, 59% are middle, and 5% are high. Also, 23% of the townies are married, 15% have children and 22% have elder dependents.
To calculate the amount of taxes to be paid by townies, I first calculate the playables’ taxes. For simplicity’s sake, I have one household of four (married couple plus two kids) as my playable total. Once I determine the total net worth and net taxes due, I have the basis for determining the townie/NPC total.
First, I allocate the population by income class using the 36-59-5% mults (if the total is 215, then the low-medium-high population would be 77-127-11). To determine the T/NPC total net worth, I multiply the average net worth by the total T/NPC population in each income class. I say average because if you were to multiply for the total playable net worth, you would be assuming that each townie/NPC has a net worth of that amount. In this amount, the average is $55,731. So I multiply the $55K by 215. This leaves the total T/NPC net worth as just under $12 million! I know this seems like a lot, but it will reduce.
I then calculate the gross tax due by each income class (10-10-15%). Now the gross tax due amount is about $1.23 million. At this time, I calculate the population allocation for the marriage, child and elder deductions (23-15-22%). For example, to allocate the low-income figures, I calculate 23% of 77 for married sims (18), 15% of 77 (12)and 22% of 77 (17) for child and elder deductions, respectively. So the total amount of deductions are $27K for marriage (18 @ $1500), $12K for child (12 @ $1000) and $17K (17 @ $1000), for a total of $56,000 in deductions for the low-income class. If I do the similar calculations for the other incomes, I get a total of $153,500 in deductions.
This leaves a total T/NPC taxes due as $1,074,672 and after adding to the playables’ total, the total net taxes due to the city is $1,076,745. That’s a good chunk of change for the city every round! I admit this is a high amount, because the average net worth in this example is approx. $55K. But in your hood it may be $28 or $112K. If you feel, that this is still too much, you could half it or quarter it or not factor in the townies/NPCs at all. It’s your choice.
On another tab, I have a proposed budget that allocates the tax income to the different departments. Even further, I also allocate the funds to sub-departments. I did this primarily because of the education department in particular. Since the LC is planning to have an in-hood university, they are saving funds to build the campus. The oldest minor in my game is 10, so I figure that the city has up to eight years to gain the funds and build the campus in time for high school graduation. Since that’s approximately 4 rounds, they should earn enough. The same goes for the primary and secondary schools as well. I also use this allocation as a “budget” when I build the community lots that will be hood-owned.
Finally, there is a worksheet for the cash register. Any funds going in and out of the city will be listed. HORs or BCs received, any buildings constructed and sold, and goverment salaries are examples of transactions that will be listed. This will help in balancing the budget every round.
Is your head swimming yet? I know, it’s pretty complex. But then again, so are taxes! Please feel free to post comments and questions. I’d love to hear whatcha think. Happy Simming!