2008-04-15_REVISION - M1980244 (307)

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revenue in 2007. Because gold mining is a basic economic industry, all of these increases repre- sent additional revenues, as opposed to a simple shift from one industry to another that would result from a new non-basic employer. • Not included in the analysis are the property taxes that could be expected to be generated from the residential property owned by employees, 'the property tax generated from the businesses supported by the labor and non-labor expenditures of CC&V, and the property taxes of those persons employed through the induced effects of CC&V expenditures. Additionally, state tax revenues accrue to the local school district based on the number of school age children of the families supported directly and indirectly by CC&V. Similarly, other kinds of tax revenues (lot- tery funds, highway funds, etc.) are distributed to local governments by the state based on popu- lation, aportion of which results from the mining activities of CC&V. These tax revenues are also excluded from this analysis. A 1995 study prepared for the Teller County Commissioners on the effects of gaming showed that there was a high level of demand for government services resulting from the rapid growth within the county and that total revenues failed to rise as fast as demands for service. This, in addition to the property and sales tax payments by CC&V and the severance tax reimbursements from the state because of CC&V's activities, shows how CC&V represents an important contri- bution to local government finances. Table 20 -Municipal, County and State Sales Tax Revenue from Direct and Induced Expenditures of Earnings from CCBV - 2007 Teller County Region State Local Earnings (thousands) $24,320 $48,923 $64,947 Percent of Earnings Spent on Taxable Items 55.00% Total Taxable Expend. of Earnings (thousands) $13,376 $26,908 $35,721 Percent Spent Locally 46.91 % 78.32% 100.00% Local Taxable Expend. of Earnings (thousands) $6,275 $21,073 $35,721 Average County Sales Tax Rate 1.00% Estimated County Tax Revenues from Earnings Expenditures (all counties) $62,745 $210,734 $357,210 Average Municipal Tax Rate 2.50% Estimated Municipal Tax Revenues from Earnings Expenditures (all municipalities) $156,863 $526,834 $893,024 • State Sales Tax Rate 3.00% Estimated State Sales Tax Revenues from Earnings Expenditures $188,236 $632,201 $1,071,629 Source: David Bamberger & Associates 32