Tax System Outline

Owned by The Dev Team
Last updated: Apr 03, 2024
3 min read

In FSN, we believe in adding as much realism as possible to an experience. Part of that is simulating taxes. Here are the details on how the system works!

Tax Cycle
Every 30 days.

Contractors

Contractors are exempt from the primary taxation schedule. Instead they are only liable for two items. One is virtual garage storage fees, which are $200 per piece of equipment, per 30 days. Secondly, they have a COL (Cost of Living) fee taken every 30 days, which simulates you leading a frugal life while away from farming. The COL fee is 0.25% of your wealth, per month. This means even farmers who go to contract status can spend months, or even RL years away without it making a significant dent in your finances, while still simulating the realism FSN expects, and helping to create a stable economic model.

Payment Schedule
Taxes Generate on the 1st of the month, and must be paid by the 30th of the month.

Non-Payment
Unpaid taxes after the 30th of the month there may be a lien imposed against your land. If taxes remain unpaid more than 3 months in a row, assets will be seized to pay off the liability.

Basic Formula
12 Day Servers - Taxation Base Rate is 3.5% of Land Value
24 Day Servers - Taxation Base Rate is 1.75% of Land Value
24 ER Servers - Taxation Base Rate is 5% of Land Value
Generational Servers - Taxation Base rate is 5% of Land Value

(Note on above: Taxation base rate is lower for 24d regular servers because they have less 'harvests' per 30 day window. In the end this should work out the same given you get 2x the harvests on a 12 day server, but will owe 2x the taxes. ER Servers are designed as a challenging experience, and thus start with a higher basal taxation rate.)

Modifiers (The larger your farm, the higher your tax bracket)
(Numbers in NAV Valuation)
500k or Under: 1x
500k-1m: 1.25x
1m-1.5m: 1.5x
1.5m-2.5m: 2x
2.5-3.5m: 2.5x
3.5-5m: 3.5x
5m-7.5m: 4x
7.5m-10m: 4.5x
10m-15m: 6x
15m+: 8x
ER NOTE: ER Servers Incur an additional 1.5x on top of whatever modifier is their bracket above.

Tax Deductions & Credits

There are a few ways which a farm can help reduce it’s taxable footprint in FSN.

  • Virtual Garage Storage Any equipment stored in the virtual garage is only taxed at 20% of it’s NAV, instead of 100%.

  • Equipment Depreciation Equipment depreciates at 2.5% per 10 work hours. Be sure your equipment is audited before the next tax bill so that you can take advantage of this.

  • Wealth Write-Offs Contributing to your “Retirement” on FSN allows you to move your NAV down. However moving money to this system means it is no longer useable by your farm, do so wisely!

  • Good Citizen Credits *by performing certain tasks or being a good citizen, you can earn additional money off your taxes, current GCC’s include:

    • Neighborly Help Credit: For each contract you've done in the past 30 days, you earn .01% off of your taxes, up to 0.1% off.

    • Accurate Registry Credit: When you are audited if you have registered all of your vehicles, and were not flagged for having unregistered ones, you will receive .1% off your taxes.

    • Environmental Emissions Credit: When you have less than 40 pieces of equipment on your active farm, helping to contribute to a stable server environment, you will receive .1% off your taxes.

 

Tax Examples
Farm Valued at $2 million bux, with 500k in land on 12 day server.
Base Rate: $500,000 * 3.5% = $17,500
Modified Rate: $17,500 * 2 = $35,000

Farm Valued at $5.25 million bux, with 2m in land on 24 day server.
Base Rate: $2,000,000 * 1.75% = $35,000
Modified Rate: $35,000 * 4 = $140,000