Politics and Taxes
Double click, tap, pat, touch, knock, or bob on the photo above for an overview of legislative candidates registered for the May 12 Nebraska Primary Election. You will find them to be quite a handsome group.
March General Fund Receipts
According to Tax Commissioner Tony Fulton, gross receipts for March were $551 million, or 11.0% above the certified forecast of $497 million.
- Gross Sales & Use 13.7% above forecast
- Gross Individual Income 5.4% above forecast
- Gross Corporate Income 41.5% above forecast
- Gross Miscellaneous 6.5% above forecast
Net receipts for March were $380 million, or 12.2% above the certified forecast of $339 million.
- Net Sales & Use 9.4% above forecast
- Net Individual Income. 8.4% above forecast
- Net Corporate Income. 45.5% above forecast
- Net Miscellaneous 6.5% above forecast
Net General Fund Receipts for fiscal year 2019/2020, which ends June 30, was $3.656 billion, or 8.8% above the certified forecast of $3.359 billion.
- Net Sales & Use 7.9% above forecast
- Net Individual Income 4.3% above forecast
- Net Corporate Income 61.3% above forecast
- Net Miscellaneous 4.3% above forecast
Corporate income receipts far exceed projections. There is good reason to believe that much of the increase in revenue is a result of the Department of Revenue’s questionable interpretation of the 2017 federal Tax Cuts and Jobs Act (TCJA) that created a new type of foreign deemed income called Global Intangible Low-Taxed Income, aka GILTI.
This new provision deems the current year income of foreign subsidiaries above 10% of the foreign subsidiaries’ fixed assets to be the income of U.S. parent companies. The Department’s position would result in the current taxation of the earnings of foreign subsidiaries – directly contradicting the Nebraska Legislature’s 35 year-long intended treatment of deemed foreign income.
Complicates? Yes. Are multinational companies with operations in Nebraska less than pleased? YES!!
LB187 SUPPORT (Hilkeman)
- Adds two new definitions to an eligible sports arena facility to the Sports Arena Facility Financing Assistance Act.
- Any sports complex which includes concession areas, parking facilities and onsite administrative offices connected with operating the sports complex.
- A multipurpose field meaning a rectangular field of grass or synthetic turf which is primarily used for competitive field sports, that may include soccer, football, flag football, lacrosse or rugby.
- The bill repeals the occupancy requirement to receive a turn back of sales tax and replaces occupancy with project completion date.
LB1084 (Kolterman) MONITOR
- The Nebraska Transformational Project Act would provide $300 million in state funding to the University of Nebraska Medical Center for their NExT Project.
- NExT Project has two components: a state of the art academic medical center facility and a federal all-hazard disaster response military and civilian partnership.
- UNMC must show an economic impact to Nebraska of at least $2.7 billion during the planning and construction period and at least $4.9 billion over ten years.
FAILED TO ADVANCE
LB974 MONITOR (Linehan) REVENUE COMMITTEE PRIORITY BILL
- This is a complex property tax and school funding bill. As amended by AM2433, the bill would reduce property taxes as a major source of funding for K-12 education.
- Real property would be valued at 95% of actual value for tax year 2020.
- In tax year 2021, real property would be valued at 91%of actual value.
- In tax year 2022, and thereafter, real property would be valued at 86% of actual value.