Politics & 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.
Select File
LB803 (Hughes) MONITOR – SPEAKER PRIORITY BILL
- Creates a new promotional checkoff program for pulse crops, including dry peas, lentils, chickpeas or garbanzo beans, faba beans, and lupine. The bill also expands a waiver of a distance limitation for overweight/oversize vehicles transporting crops to include pulse crops.
General File
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. Before receiving $300 million, UNMC must show the economic impact to Nebraska is at least $2.7 billion during the planning and construction period and at least $4.9 billion over ten years.
- 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.
LB1159 (Stinner) SUPPORT
- Extends the initial training period for a noncertified pesticide applicator from 60 to 120 days prior to obtaining an initial commercial or noncommercial applicator license. The bill also authorizes unlimited exam attempts for the noncertified applicator during that training period.
Held In Committee
LB919 (Wayne / MONITOR)
- Hemp cultivator, processor-handler, and broker license and renewal applications shall only be denied if they are incomplete or deficient, including for nonpayment of the required application and registration fees, or if the applicant does not meet minimum qualifications.
LB946 (Briese / MONITOR)
- The bill lowers the sales tax rate and eliminates exemptions on services. Service includes all activities that are engaged in for other persons for a consideration and that involve predominantly the performance of a service as distinguished from selling or leasing tangible personal property.
Failed to Advance
LB974 (Linehan) MONITOR – REVENUE COMMITTEE PRIORITY BILL
- A complex property tax reduction and school funding bill. As amended by AM2433, the bill would reduce property taxes as a significant source of funding for K-12 education. Unless expressly exempt:
- Real property would be valued at 95% of actual value for the tax year 2020, 91% in the tax year 2021, and 86% in 2022 and after that.
- Agricultural and horticultural land would be valued at 65% of actual value in the tax year 2020, for purposes of taxes levied by a school district and 75% of actual value for taxes levied by other political subdivisions.
- Agricultural and horticultural land would be valued at 60% of actual value in the tax year 2021, for purposes of taxes levied by a school district and 75% of actual value for taxes levied by other political subdivisions.
- Agricultural and horticultural land would be valued at 55% of actual value in the tax year 2022, and each tax year after that, for purposes of taxes levied by a school district and 75% of actual value for taxes levied by other
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