New economic development revenue sources approved

Senators gave final approval March 10 to a bill that gives cities more revenue sources to fund economic development projects.

During the 2010 general election, Nebraska voters approved a constitutional amendment to allow cities to use a greater number of revenue sources for economic or industrial development projects approved by city voters. Previously, property taxes and local option sales taxes were the only revenue sources authorized.

The approved constitutional amendment added to the list of suitable funding sources any general tax authorized by the municipality and revenue generated from municipal utilities, grants, donations, or state and federal funds.

LB471, introduced by Wilber Sen. Russ Karpisek, incorporates the amendment into the Local Option Municipal Economic Development Act. The bill also restricts uses for revenues generated from municipal utilities to utility-related projects or activities associated with a city council-approved economic development program, such as energy efficiency, load management and site development.

The bill was approved on a 48-0 vote.