Some cities can delay refund of job credits

A bill meant to ease the financial strain on city governments was passed by the Legislature April 5.

Under LB209, introduced by Bellevue Sen. Abbie Cornett, cities of the first and second class, as well as villages, can delay payment of job credit tax refunds by one year. Nebraska cities are classified by population as follows:
• first class cities have populations between 5,000 and 100,000;
• second class cities have populations between 800 and 5,000; and
• villages have populations between 100 and 800.

An installment repayment option is allowed for any refund exceeding 25 percent of a city’s total sales tax receipts.

Cities will be notified of pending job credit tax refunds one year in advance. The bill also permits a certified municipal employee to obtain confidential sales tax return information from the state tax commissioner on behalf of his or her municipality.

Senators passed the bill on a 49-0 vote.