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4. Sales tax computation for retail development. A large-scale regional shopping center is proposed. The developer envisions 640,000 s.f. of retail space. She presents a

4. Sales tax computation for retail development. A large-scale regional shopping center is proposed. The developer envisions 640,000 s.f. of retail space. She presents a market analysis that estimates that, on average, each square foot will generate $220 per year in sales. Assuming that there are no special districts or other increases approved by local voters, first estimate the annual total sales tax generated by this project, and then estimate the sales tax that goes to the city in which the project is proposed. The city recives 1.5% of sales tax revenue.

Consider: what factors might suggest that the citys sales tax wont actually increase by that amount?

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