Local option sales tax disclosure rules updated

Lawmakers passed a bill May 30 intended to help municipalities better track and predict local option sales tax receipts.

The state tax commissioner 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. Previously, the municipality could request the information annually.

Under LB613, sponsored by Omaha Sen. Bob Andersen, a municipality may 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 requires 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.

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

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

LB613 passed on a vote of 45-3.