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A GUIDE TO RETAIL IMPACT STUDIES A related calculation is the change in total retail wages to be expected in the community. As with retail jobs, the baseline value is derived from Economic Census data for the community, while the wage contribution of the proposed new store is based on corporate averages identified earlier and adjusted for local conditions. The chart below is drawn from the same study as the first chart above. In this case, the proposed new retailer was expected to offer wages comparable to the prevailing local wage. Forecasting Impacts on Municipal Finances The analysis also examines the fiscal impact of the proposed development, meaning its effect on public revenue and costs for towns in the market area. The impact of a large-format retail store on public finances varies considerably depending on the particular circumstances and the types of taxes that the host municipality relies on. Sales Tax Revenue Several states, including Maine, have no municipal sales tax. Sales taxes flow to the state. At the state level, a new retail development is unlikely to have much effect on sales tax revenue as its presence cannot induce new spending beyond what the state's population and income levels can support. An exception would be a store that draws significant numbers of shoppers from across state lines. However, this is still unlikely to have more than a slight effect on overall state tax revenue. In areas where municipalities and counties do rely on sales taxes, they are often of paramount importance in financing local government services. Even seemingly small increases in municipal revenue are attractive to officials. The job of the analyst, of course, is not to weight the costs and benefits of employment, wages, and public revenues. Rather, the analyst should present these values with clarity and allow the community to determine the appropriate balance. Generally speaking, the calculation for estimating the amount of sales tax gained or lost is an easy one. The net change in sales is simply multiplied by the sales tax rate to determine the sales tax generated. Cities, counties, states,and other political subdivisions may have different sales tax rates that determine the amount of income received by each entity. Property Tax Revenue Many communities rely quite heavily on property taxes. That tax base may be, in turn, heavily reliant on a healthy retail and commercial sector, on a healthy tourist industry, or on high value shoreland and other residential properties. 21