QUANDARY
WalletHub says Nebraska’s effective total state and local tax rate is 49th worst in the country. The Tax Foundation ranks our property taxes the 40th highest. They also say we are middle of the pack in terms of our sales taxes (#25) and business tax climate (#24).
Conversely, the Bureau of Labor Statistics puts our unemployment rate (2.8%) as the sixth lowest. USA Today says Nebraska is the tenth happiest state in the country. Nebraskan’s are happy like toadstools. We are kept in the dark and fed statistics.
The Legislature’s Revenue Committee wraps-up their hearings on Friday. Members have engaged testifiers with patience and civility. Even those who deserved much less.
The Committee will now work internally to deal with a high-stakes quandary. Do they significantly reduce property taxes (e.g. LB497, LB507) at the expense of increasing sales and/or income taxes? Or, will they fully fund a $1.267 billion economic development program, over 10 years, to incentivize businesses to locate/grow in Nebraska? Sense a compromise?
Homeowners and landowners want lower property taxes. Duh. Up to $700 million lower. Property taxes fund 60% of K-12 education. You can’t defund education. Teachers would march. New money must be found. Let’s say for the sake of argument…. it comes from higher sales and/or income taxes?
Watchlist
LB284 (McCollister) Internet Sales Tax
SIGNED BY THE GOVERNOR
Requires remote sellers (those without a physical presence in the state) and/or “marketplace facilitators” to collect and remit sales tax beginning July 1, 2019 if:
- Gross revenue from sales into the state exceed $100,000
- Sales into the state exceed 200 or more separate transaction in the same time period.
LB320 (Albrecht) General File
Brings provisions of the Pesticide Act into alignment with revisions to the Certification of Pesticide Applicators Rule, which establishes standards for state programs to certify persons applying restricted use pesticides (RUPs), training/competency to be demonstrated by applicators to obtain certification and licensure, and related record keeping. The revisions increase Federal applicator certification program standards, enhance pesticide safety training and standards for supervision of noncertified applicators, and establishes a minimum age requirement for noncertified applicators using RUPs under the direct supervision of a certified applicator. States have until March, 2020 to submit to EPA revised certification plans that comply with the updated rule requirements.