- 1 What are they?
- 2 How much will I Pay?
- 3 Modifiers
- 4 Examples
- 5 Disparity Between Tiers
- 6 Tax Ammendments
- 7 Common Questions
What are they?
Taxes in FSN are currently related to your in-game land holdings, and your total NAV (Net Asset Value). In future versions, there will be taxation on your income as well, depending on what industry you are in. Taxes come once per year, usually in late fall to early winter, and are due by the following summer.
How much will I Pay?
This answer can vary greatly depending on the the size of your farm/business and the NAV value you have. Below we have given the basic parameters of how taxation works.
- Arable Land: Taxation of $135 per arable acre.
- Base Land Cost: BASE taxation of 0.6% of base land value.
There are two items that can modify your base taxation rate. The first is your NAV Tier (Representing your overall wealth), and whether or not your land is on your home or sponsored server.
- If parcel is not on home map or sponsored map, all above base prices and arable double.
- Tier 1 (Under .5m NAV) - 1.5x Modifier to base land value.
- Tier 2 (.5m - 1m NAV) - 2.0x Modifier to base land value.
- Tier 3 (1m - 1.5m NAV) - 4.5x Modifier to base land value.
- Tier 4 (1.5m - 2.5m NAV) - 6.0x Modifier to base land value.
- Tier 5 (2.5m - 3.5m NAV) - 8.0x Modifier to base land value.
- Tier 6 (3.5m - 5.0m NAV) - 10.0x Modifier to base land value.
- Tier 7 (5.0m - 7.5m NAV) - 12.0x Modifier to base land value.
- Tier 8 (7.5m - 10.0m NAV) - 15.0x Modifier to base land value.
- Tier 9 (10.0m - 15.0m NAV) - 17.0x Modifier to base land value.
- Tier 10 (Greater than 15.0m NAV) - 25.0x Modifier to base land value.
Below are a couple simple practical examples to explain the difference between the smallest possible payment on a piece of land, and the largest possible payment on that same piece of land.
Example 1, Smallest Amount
Farmer 1 has 50 acres of land. 40 acres of that land is arable. It is his home server, and his NAV is under 500k. The base value of the land is 250k. The formula would be as follows...
- Arable Rate (Home): $135 x 40 = $5,400.00
- Base Land Rate (Home), Tier 1: (($250,000 * .007) * 1.5) = $2,625.00
Total Tax Farmer 1: $8,025.00
Example 2, Largest Amount
Farmer 2 has 50 acres of land. 40 acres of that land is arable. It is not his home server, and his NAV is over 15m. The base value of the land is 250k. The formula would be as follows...
- Arable Rate (Non-Home): ((($135 x 40) * 2) * 25) = $270,000.00
- Base Land Rate (Non-Home), Tier 10: ((($250,000 * .007) * 2) * 25) = $87,500.00
Total Tax Farmer 2: $357,500.00
Disparity Between Tiers
As you can see there is a large difference between what a minimum amount tier a home player would pay, versus what a large farm would pay. The concept here is simple. As you get larger and larger, FSN encourages you to make smarter business choices, such as consolidating more land on your home map instead of going on to 10 different maps. It's not that you can't go there, it's just that after a certain point, it may not be the most prudent thing to do.
This system works to encourage our players to ensure that if they are growing on a very large scale economically that they are also doing so with sound business practice to maintain that growth. Furthermore, it assists local farmers with encroachment on a large scale from large outside operations and also gives more opportunities to small farms, so even farms new to the FSN community have a fair play opportunity against much more veteran players.
Taxes are reviewed generally on a bi-yearly basis, and if changes are deemed necessary, they will be made at that time. The development team reserves the right to make any changes deemed necessary to the Tax code, especially while we are in such early phases. If you have questions, concerns, or suggestions regarding this system, please do not hesitate to send in a support ticket.
What if I don't pay my taxes?
Your credit score will begin to be dinged, and over enough time, the government of FSN may repossess your assets or freeze your accounts in order to make you rectify your tax deficit.
This doesn't seem fair!
Nothing about FSN was designed with "easy" in mind. It is designed to be an environment that is fun, realistic, and challenging. This simulated tax system is one of our gameplay mechanisms designed to assist with the overall spirit of FSN gameplay balance and growth of players. Even at the highest tax scale, you could make profit on the land, just not nearly as much as you could as a smaller farm, or by doing something smarter like consolidating on a home map.
I don't think my taxes are right.
If you feel your taxes are incorrect, send a screenshot of your tax bill, and a screenshot of your accounting overview. We will process your report as soon as we are able, but in general, the entirety of the taxation system is automated and isn't prone to many errors.