Advantages of Proposed Sales Tax and Cost Estimates Reported by Study - Taxes | Financial Buzz

Advantages of Proposed Sales Tax and Cost Estimates Reported by Study

Marion, Study, Sales Tax, Local SalesA recent local sales tax implemented in Marion County would cost a resident a few hundred dollars every year. However, this move could also lead to the creation of many local jobs. Apart from offering close to 2,000 jobs, in a single setting, the developments financed by the tax could provide an impetus to the values of property as well as attract fresh individuals to the local community.

Findings from the study

The study notes that if the primary objective of the new sales tax implementation is on generating returns, both the private and public sectors will receive valuable benefits.

On the basis of the predictions offered for spending and tax earnings, it is most likely that the financial returns would be greater than the cost incurred for the sales tax implementation, which is not more than the rate of tax in the neighboring counties.

The analysis report was completed in the previous month by Younger and Associates, based out of Tennessee. This was produced for the Ocala-Marion County Chamber and Economic Partnership. The analysis was done for the County Commission to get a comprehensive understanding about whether a fresh sales tax needs to be put on the ballot in November.

Impact on jobs and local residents

It is possible that certain jobs may be affected by the tax. Also visitors would need to invest many more millions in the count to compensate for the difference, in the event it happened. The occurrence of the situation was however deemed “impossible” by analysts, as it meant the presumption of an economic effect or response that was most unlikely.

The study also revealed that the tax implementation would not result in encouraging residents of the county, responsible for almost 70 percent of the local area retail purchasing, to leave the county to escape the heavy taxes.

Tax proposal

A sales tax of 1-cent is proposed in the main scheme, which is predicted to go on for a period of five years. However there has been no final decision on the exact number of years. Approximately 35 million dollars would be raised annually with the tax implementation.

In the month of April, a report was released by the Zalak committee in which approximately 250 million dollars were identified for investing in programs of public safety, construction of a civic center, libraries, road paving and so on.