State’s Tax Revenue Beats Expert Forecasts
Lincoln, NE (July 15, 2021) Nebraskans earned more, and spent more money than experts predicted over the past year. That’s the conclusion after the State Department of Revenue released figures on tax collections today. The State brought in just under $6 Billion dollars in sales and income taxes over the past fiscal year, which ended June 30th. Experts had forecast it would be just over five billion.
“Nebraskans weathered the pandemic with grit and determination,” said Governor Ricketts. “Our economy has powered through the uncertainty of the last year, and that is resulting in significant growth in state revenues. Thanks to LB 1107, which I signed into law last year, higher state revenues have created record property tax relief for our farmers, ranchers, homeowners, and small businesses.”
LB 1107, which was passed and signed into law in 2020, created the Property Tax Incentive Credit. In its first year, the credit was worth $125 million. Taxpayers received the credit when they filed their state income taxes this year. Next year’s credit will be worth over $548 million thanks to higher revenues.
In addition to the Property Tax Incentive Credit, the State of Nebraska’s budget also includes $300 million in direct relief through the Property Tax Credit Relief Fund and $104 million through the Homestead Exemption. Altogether, the State of Nebraska will provide $952 million in direct property tax relief to offset local property taxes in Fiscal Year 2021-22.
“Today is a good day for all Nebraskans who have continued to bear the brunt of high property taxes, particularly our state’s farm and ranch families” according to Mark McHargue, President of the Nebraska Farm Bureau. ” This morning’s announcement by the Nebraska Department of Revenue shows that state revenue numbers will boost property tax relief even more with the Property Tax Incentive Credit. Nebraska Farm Bureau estimates taxpayers will see a tax credit equal to 22 percent of their property taxes paid to schools when they file their 2021 tax return. This is 3.5 times the amount they received this tax year.”
McHargue saluted the Governor, The Legislature, and his Farm Bureau members for the passage of LB 1107 in 2020. “This was a priority bill for Nebraska Farm Bureau, which allowed Nebraskans to claim, for the first time, the new income tax credit based on the property taxes they pay to K-12 schools.”
The leader of the State’s largest Farm Organization continued “This is a big ‘win’ for property taxpayers who’ve been seeking relief. We look forward to continuing to work with the governor and the Legislature to move Nebraska in the right direction in lowering some of the highest property tax burdens in the nation.”