Supporting_statement_part_b_2013

SUPPORTING STATEMENT

U.S. Department of Commerce

U.S. Census Bureau

Quarterly Summary of State and Local Government Tax Revenues

(Forms F-71, F-72, F-73)

OMB Control Number 0607-0112

Part B – Collections of Information Employing Statistical Methods

1. Universe and Respondent Selection

Form F-72 is sent to all 50 state governments and the District of Columbia. Since universe coverage is achieved, no sampling or estimation is employed. The complete canvass methodology is the only way to achieve national totals for state government tax collections.

Form F-71 is a sample sent to about 5,533 unique local governments that collect property taxes.

Form F-73 is a sample of about 1,800 unique local governments that impose non-property taxes. The sample size is being scaled back to reflect a decrease in the number of different non-property taxes that is being collected. Only those local governments that impose general sales, personal income, and corporate income taxes will be included in the universe listing, which is currently being constructed. Most New England states, for example, do not have these three taxes at the local level.

Unit

Form Sample Universe Response Rate

F-71 Local government tax collectors

Sample 5,533 35,000 64%

F-72 State governments 51 51 100%

F-73 Major local governments

Old Sample 3650 49,613 46%

New Sample 1800 Unknown NA

Overlap of Old/New Unknown Unknown NA

Response rates are based upon receipts during the initial quarter mail-out period and are subject to increase over subsequent quarter collections as late data are revised.

The survey collects data using three forms:

The Quarterly Survey of Property Tax Collections (Form F-71) is sent to 5,533 local government property tax collecting agencies. While some counties are served by a single county level tax collection agency, others have county, city, township, and even school district collectors. Each agency is asked to report the total property tax collections during the past quarter. The F-71 sample will not change until after the 2012 Census of Governments: Finance Component has been processed. A new frame of property tax collectors will be constructed in 2014, and in early 2015, a stratified sample of tax collectors will be selected. Currently, a stratified cluster sample is selected because a frame of tax collectors is not available. A jurisdiction is selected first and all collectors in the jurisdiction are currently being selected into the sample. After a frame of property tax collectors is constructed, a more efficient stratified or probability proportional to size sample will be selected. This new sample will ensure that this portion of the survey meets OMB’s statistical standards. At that time we will continue to collect the concurrent samples for two additional quarters, at which time a bridge study will be conducted and the old sample will be discontinued.

The Quarterly Survey of State Tax Collections (Form F-72) is sent to a state level revenue, finance, or budget agency in each state to report tax collection data during the past quarter.

The Quarterly Survey of Selected Non-Property Taxes (Form F-73) is currently sent to 3,650 local government tax collection agencies. Each respondent is asked to report the total non-property tax collection during the past quarter. Due to the reduction in the questionnaire from 11 collected taxes to 3, the universe of local governments that impose the three taxes (general sales, personal income, and corporate income) is smaller than the universe of governments that impose the 11 collected taxes. This universe is being constructed. A stratified sample of about 1800 governmental units will be selected. Those units in the old sample that have any of the three taxes will be carried for another 2 quarters and a bridge study will be conducted between the old sample and new sample.

2. Procedures for Collecting Information

The survey collects data using three forms:

The Quarterly Survey of Property Tax Collections (Form F-71) is sent to 5,533 local government tax collecting agencies. While some counties are served by a single county level tax collection agency, others have county, city, township, and even school district collectors. Each agency is asked to report the total property tax collections during the past quarter. Units in the universe of county areas were stratified by population and a cost indicator prior to allocating using Neyman allocation. At this point a Horvitz-Thompson estimator is being used until we research the usefulness of using calibration. The sample was designed to yield a coefficient of variation of less than three percent on a national estimate of property tax. Coefficients of variation and margins of error are calculated and disseminated with the sample.

The Quarterly Survey of State Tax Collections (Form F-72) is sent to a state level revenue, finance, or budget agency in each state to report tax collection data during the past quarter. This is a census of state tax collections so there is no sampling error associated with this survey.

The Quarterly Survey of Selected Non-Property Taxes (Form F-73) will be sent to a sample of about 1,800 local tax-imposing agencies known to have collections of local general sales, local individual income taxes, and local corporate income taxes. The sample universe is currently being constructed to list all local agencies in the universe. The sample is designed to yield a coefficient of variation of less than three percent on a national estimate of each of the three taxes. We will use calibration methods to calculate the three totals, using data from the annual survey, just as we are currently doing. In the future, we will be using a bootstrap to calculate the variances. A table of national totals of state and local government estimates will be provided to the data user along with coefficients of variation, margins of error, and Total Quantity Response Rates. Tables of state government estimates for more detailed taxes will also be available.

3. Methods to Maximize Response

Telephone and email follow-up are conducted throughout the collection period to maximize response. New contacts are obtained for chronic non-respondent units as well as compiling data where available from Internet sources.

Respondents can and do submit late data for prior quarters that were imputed as well as revisions to prior quarter data (for up to seven prior quarters). They are also encouraged to submit reasonably estimated data for the current collection when actual data are not available by the time the current collection period is closed. These data are then revised when actual data are available.

4. Test of Procedures or Methods

The redesigned F-73 form with three survey questions underwent cognitive testing, with representatives from town, village, and county governments participating. Testing was conducted in the Kansas City, Pittsburgh, Cincinnati, Atlanta, and Montgomery, AL metro areas. See the attached summary report for detailed findings.

5. Contacts for Statistical Aspects and Data Collection

Statistical Aspects

Carma R. Hogue

(301) 763-4882

Assistant Division Chief – Research and Methodology Area

Governments Division

Data Collection

Brian Zamperini

(301) 763-7028

Section Chief

State Finance and Tax Statistics Branch

Governments Division

Attachments

F-71 survey form and cover letters

F-72 survey form and cover letter

F-73 survey form and cover letters

Cognitive testing report