The State of the Economy
It is no secret that the ebb and flow of the local economy significantly impacts city and town budgets. However, predicting this potential impact can be a rather difficult task for city officials.
Cities and towns receive the majority of their tax revenue from sales tax and property tax. Sales tax can be somewhat volatile depending on the state of the economy and type of industry within the city. In addition residential construction can have a negative or positive impact on cities budgets, depending of the rate of construction. For example, many of the good used to build and furnish a new home are subject to sales tax–when homes are not being built that potential revenue decreases.
Doug Macdonald, former Chief Economist for the Utah Tax Commission, has teamed up with the League to provide economic forecasts and outlooks to help in the year round budget process. Contact Doug Macdonald with any questions: email@example.com
Important economic indicators
Every three or four month the League reviews the current state of economic indicators that are salient to Utah’s cities.
These indicators are:
- Utah Wage and Salary
- Utah employment
- Utah average wage
- Utah unemployment claims
- Construction employment claims
- Residential construction values
- Nonresidential construction values
- Long/short term yield spread
- Misery index
- U.S. CPI (inflation)
- Utah unemployment rate
- Local 1% sales tax
Each of these indicators are reviewed by a scale of green to red — green illustrating this economic indicator is still strong, red illustrating that is not growing or decreasing.
- August 2010 Economic Indicators Reviewed
- April 2010 Economic Indicators
- March 2010 Economic Indicators
- February 2010 Economic Indicators
- January 2010 Economic Indicators
- December 2009 Indicators
- Summary of December Indicators
- November 2009 Indicators
- Summary of November Indicators
- October 2009 Indicators
- Summary of October Indicators
- September 2009 Economic Indicators
- Summary of September Indicators
- August 2009 Economic Indicators
- July 2009 Economic Indicators
- June 2009 Economic Indicators
- May 2009 Economic Indicators
- Summary of May 2009 Indicators
- April 2009 Economic indicators
- Summary of April indicators
- March 2009 Economic Indicators
- March 2009 summary of each Indicator
- December 2008 Economic Indicators
- April 2008 Economic Indicators
- February 2008 Economic Indicators
How to forecast sales tax for your city and town?
Data needed for sales tax forecasting?