Updated local option sales tax disclosure rules advance

A bill intended to help municipalities better track and predict local option sales tax receipts received first-round approval from lawmakers April 3.

Omaha Sen. Bob Andersen, sponsor of LB613, said the measure is intended to ensure that municipalities have “reasonable access” to tax data that they can use to plan their budgets.

The state tax commissioner currently is required to provide a municipality that has adopted a local option sales tax with a list of the names and addresses of local retailers that have collected the tax. A municipality can request the information annually.

Under LB613, a municipality could make the request three times per year and also ask for certain additional information as long as it does not include data on the specific revenue, expenses or operations of any particular business.

Additionally, the bill would require the commissioner to send, upon request, electronic copies of local option sales and use tax returns and certain other information to an individual authorized by a municipality to review the confidential documents.

In most cases, the individual currently must review the information on department premises, which Andersen said is costly and time consuming for those who live far from Lincoln.

Under LB613, the authorized individual also could disclose tax returns and other information to another municipal employee to verify:
• the accuracy of the collection, analysis and forecasting;
• the accuracy of the allocation made between various municipalities of the tax due; or
• that the taxes are used according to their approved purpose.

Finally, the bill would allow a municipality to request from the state Department of Revenue a list of businesses that have applied to receive tax incentives under certain programs. The request could be made annually.

LB613 advanced to select file on a vote of 33-0.