I have feedback about the Citadel Industry Facility Tax
As it stands right now, the percentage you setup in your Structure Browser window, and that you will get for each job, is a percentage based off of the NPC tax applied to that job before the player tax, and that is then added to the final tax.
So, to take a concrete example:
Side-node: Please everyone take note that the maximum tax I could get in that situation, for my corp wallet, is 47500isk for a 10mil item.
- I have an item worth 10 000 000 isk that I want to build. The System Cost Multiplier is at 1.00%.
- That makes the base NPC tax at 100 000 isk.
- The Citadel has a bonus of 5% to the tax rate so that's now 95 000 isk.
- Now let's imagine that I have my industry fee tax setup at 25% in my citadel. That's an added 95 000isk x 0.25 = 23 750 isk tax.
- So the final tax on the item will be 118 750 isk. 95k for the NPC and 23k for the corporation owning the Citadel.
Again, that's the MAXIMUM in that situation. But let's come back to that later.
This is very weird
. Your tax income is dependant of the System Cost multiplier of the system. Which means that as soon as it starts rising, the rise is even more important if you are in a citadel. Penalizing citadel producers more, and making quite the unstable revenue stream for the citadel owner.
Worse, to get a competitive tax rate while still making a profit, public industry citadel owners will have to calculate precisely the expected System Cost Multiplier, and micromanage it. Keep in mind that a low activity system at 0.1% System Cost Multiplier, can get taxed at 1400% by the citadel owner, and that's still only equal to a System Cost Multiplier of 1.5% for the producer.
BUT, should the System Cost Multiplier ever rise to a whooping, say, 0.4%, because the citadel is attracting some people, then suddenly your effective final Tax for the producer goes from 1.5% to 6%! For a 0.3% System Cost Multiplier. That's just insane! Imagine the required micromanagement.
Of course, all of that is only there for the purpose of demonstrating the holes in the current Citadel Owner Industry Tax calculation method, as said tax is anyway capped at 50%. Meaning that all hopes of profit for a public Industry Citadel owner in a low System Cost Multiplier system are lost anyway
And even at that low 50% cap rate, if the System Cost Multiplier were to go from 3% to 5%, then your share relative to the total value of the item would go from 1.5% to 2.5%. So you'd need to manually adjust it down if you wanted to keep it flat and easy to understand for your customers. And forget about using same Structure Profile for citadels in different systems, at it may not be the same multiplier at all. (So the way it currently works on Sisi also defeats the point of Structure Profiles)
Again, that's bad day-to-day micromanaging on a per-structure basis
.What could be done instead:
- The Citadel Tax Reduction should be a flat percentage reduction of the current System Cost Multiplier. Currently, going from -3% to -5% of tax reduction is COMPLETELY negligible as that's basically taxing the value of an item 0.1% less, in a 10% System Cost Multiplier system (which is almost as high as it gets and pretty rare). If, instead, it took the System Cost Multiplier percentage, and removed a flat percentage, then:
--- For a XL Engineering Complex, a 10% System Cost Multiplier would become a 5% System Cost Multiplier. (because minus 5%)
--- For a Medium, a 7% System Cost Multiplier would become a 4% System Cost Multiplier (because -3%)
--- For all Engineering Complexes, a 1% System Cost Multiplier would become a 0% System Cost Multiplier. Which makes more sense than taking a few isks off the top of the tax.
- The Citadel Industry Facility Tax (aka the tax that goes to the player corporation) should be a flat value of the item. So, if I have a 1% tax, then it's like adding +1% to the System Cost Multiplier, after all Citadel Reductions have been applied of course (assuming the proposition above is applied too)
--- Example: Regardless of the System Cost Multiplier, if I have a 1% player tax, then I get 1% of the isk value of the item being produced. So if someone is producing a 10 000 000 isk Item in my citadel, I get 100 000 isk. PERIOD. No need to worry about wild changes in the System Cost Multiplier. EVER.
I believe this system would be more logical, easier to manage for everyone, would give more benefit to having a citadel in a low cost multiplier system, while providing tax incentives for everyone to use an engineering complex. Of course, if a flat percentage reduction of the System Cost Multiplier is too strong with -3/-4/-5, then maybe going to -1/-2/-3 could be an option.
Thanks for your attention.