# How is tax revenue calculated

simcity-4

I'm really struggling with my budget. I think the solution may be on the revenue side, as my expenditures are quite minimal.

The taxes collected obviously depend on the tax rate, but what else? Do they depend on population or jobs? Do they depend on land value?

What is the formula?

I'd be satisfied with the residential formulas, or even conversion ratios (1 rich sim = x poor sims)

I took an entire tiny map population of poor uneducated sims from low density, to medium density. Even though the population more than doubled (6k to 14k), my residential tax did not go up.

Approximate Residential tax rates at 9% for low and mid density buildings per 2 squares (assuming 2x1 lots, that can grow to 4x3 lots)

``````       \$    \$\$    \$\$\$
low  4.0   6.5   3.75
mid  6.8  13.0  18.00
``````

The steps taken in this experiment are:

1. Prevent \$\$ and \$\$\$ from appearing by setting their tax rates to 20.
2. Create a \$ residential area with 100% same density buildings with a known lot count, run cheetah until stable.
3. Measure \$ taxes.
4. Let \$\$ in by lowering \$\$ tax to 9%, run cheetah until stable.
5. Measure \$ and \$\$ taxes.
6. Let \$\$\$ in by lowering \$\$\$ tax to 9%, run cheetah until stable.
7. Measure \$, \$\$ and \$\$\$ taxes.

Raw data:

low density testing with 20x22 = 440 2x1 lots

``````1800 total
\$ 1800 = \$4 * 440 2x1 buildings

2162 total
\$  1142 = \$4 * 285 2x1 buildings
\$\$ 1020 = \$6.5 * 155 2x1 buildings

2142 total
\$   658 = \$4 * 164 2x1 buildings
\$\$ 1034 = \$6.5 * 156 2x1 buildings
\$\$\$ 450 = \$22.5 * 20 3x4 buildings = \$3.75 * 120 2x1 lots
``````

mid density testing with 8*22 = 176 2x1 lots (2x3 buildings also occurred)

``````1214 total
\$ 1214 = \$6.8 * 176 2x1 lots

1342 total
\$ 1045 = \$6.8 * 153 2x1 lots
\$\$ 297 = \$13 * 23 2x1 lots

1431 total
\$  1013 = \$6.8 * 149 2x1 lots
\$\$  195 = \$13 * 15 2x1 lots
\$\$\$ 223 = \$18 * 12 2x1 lots
``````

Based on this information, I can see what happened to my tiny map scenario mentioned in the question. I went from low density to medium density, and (in order to manage traffic), I de-zoned 40% of my residential zones.

``````1000 2x1 lots * \$4 = \$4000
600 2x1 lots * \$6.8 = \$4080
``````

Which explains why my population doubled but my residential taxes did not increase.