Gameplay Notes: Tax Collection Procedure

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!

15 thoughts on “Gameplay Notes: Tax Collection Procedure

  1. Wow. That’s about all I have to say about that! You really do keep track of everything!

    Your rounds last two Sim years, right? And do you collect taxes every round? I do mine every other round, because I want to avoid building up the hood’s treasury too quickly (there is a TON in there already) and I don’t want my Sims to go too broke!

  2. Well, I can’t wait to see this other file you have with your city tax collection notes, proposed budget, etc. Right now, it’s been taken down..so, I’m anxiously waiting to get my ‘copycat’ hands on it, when you upload it again. *smiles* You have no idea how much time you’ve saved me with that tax return form. I got the updated one, and I’m currently entering the correct formulas now. Thanks for doing that!

  3. That darn Mediafire! I was having so much problems with that site yesterday. I know (!) that I uploaded it, or else I wouldn’t have gotten the link. I just went and it’s not there. Grrrrrr! I’ll get it posted by tomorrow, since I’m at work right now. Sorry you guys!

  4. I agree, your tax collection is detailed. I don’t know if I could keep up with Apple Valley’s taxes to that detailed especially with the townies. I mostly do taxes to keep them from getting too rich.

  5. Yeah, I’m thinking that I will tax the townies to build up the city and after that, just the playables. The population would have grown enough to fully support the city.

  6. You are a total life saver. I just sat down to do taxes (for the first time I might add) then Simmington Hills e-mailed me, telling me about you’ve put together. I am dancing in my seat. Thank you so much! I can’t wait to try it out.

  7. Wow… you are so awesome. After reading both post about your tax system I am amazed. I am starting to organize my hood since it is all over the place and you just saved me a huge step.

    Thanks

  8. This is so detailed! I take a hood census and tax townies, too, but I never even thought about the fact that they would fall over a curve as far as income levels. That’s a really good idea.

  9. I re-read these notes until I could wrap my mind around it, and I finally had my “Ahaaa!” Moment!! I get it now! Thanks so much for this! Wish I had it when I was first building up Simmington Hills. Those taxes for the T/NPCs would’ve come in handy, and we wouldn’t have needed a Neighborhood Partnership Program to help us out.

    It makes so much sense not to assume each townie has the same average networth…I really love your use of multipliers for income and population. Genius! Complex, but once you see the numbers for yourself, it’s eye-opening! I can’t wait to use all of this for next simyear’s taxes.

    1. Thank you. I was afraid no one would get my mults and such.

      How are you, btw? How are you recovering? I sure do miss SH.

      I’ll be starting my first ROS soon, so I’ll be opening up some opportunities for immigrants and emigrants. I guess we’ll just disregard the fact that my hood is in another millenium entirely.

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