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the Contract. These expenditures are 100 percent taxable, and the City's share is 1 percent <br /> of that amount. But as Table 3. indicates, the Contract generates $4,249,956 in personal <br /> income, 40 percent of which is subject to the sales tax. The City receives 1 percent of that <br /> proportion as shown in Table 5. Therefore the total sales tax revenue of the City which <br /> accrues due to the Contract is estimated to be $18,157 in 1992. <br /> Table 5. Sales Tax Benefit to Santa Ana Government- 1992 <br /> Percent Tax Sales <br /> Expenditures Taxable Rate Tax <br /> Expenditures in <br /> Santa Ana (Table 2) <br /> Supplies & Parts $81,446 100% 1.0% $814 <br /> Other 34,285 100% 1.0% 343 <br /> Total Personal <br /> Income (Table 3) $4,249,956 40% 1.0% $17,000 <br /> Total $18,157 <br /> Sales Tax Revenue 7/88 - 6/93 <br /> Similar to the estimate of the economic impact on personal income, the 1992 impact <br /> on sales tax revenue is used to generate the impact during the other years. The 1992 sales <br /> tax revenue estimate is discounted (compounded) by the inflation rate to arrive at those of <br /> the years preceding (following) 1992. Note that half the yearly sales tax revenue is included <br /> for the years 1988 and 1993. As Table 6. shows, the total tax revenue of the City resulting <br /> 11 <br />