taxes

U.S. Senator Mike Johanns says a combination of tax increases and spending cuts set to happen in January would hurt Nebraska families’ bottom lines.

The Omaha City Council is scheduled to vote Tuesday on a tax increment financing district in the area surrounding TD Ameritrade’s new headquarters.

The headquarters is in Omaha’s Old Mill area, south of 114th and Dodge Streets. TD Ameritrade officials say the TIF is needed for five-million dollars worth of infrastructure improvements. City Councilmen previously declared the area blighted.

Douglas County Commissioners oppose the TIF district, saying the revenue will only benefit the city of Omaha.

The City Council meets at 2pm.

An economic analysis group says Nebraska lawmakers need to explore changes to the state’s tax policy.

The Open Sky Policy Institute released a report Thursday morning on Nebraska’s budget and tax policy. Executive Director Renee Fry says state government needs to look at reforming the tax code, as well as expanding what goods and services are taxed. 

A half-cent increase in Omaha’s sales tax could generate $45 million for the city.

Nebraska lawmakers last week overrode Governor Dave Heineman’s veto of legislation allowing cities to raise their sales tax rate. Doing so would require supermajority approval from both the city council and voters.

Omaha’s current sales tax rate is 7 percent, with 1.5 percent of it local. Mayor Jim Suttle says there are no plans to put the sales tax initiative on the November general election ballot.

An amended version of Governor Dave Heineman’s tax cut plan is awaiting second-round debate in the Unicameral.

The tax cut plan passed the first round of debate earlier this week. Governor Dave Heineman originally called for $327 million dollars worth of tax cuts over three years. In addition to income taxes, the plan would’ve cut corporate income taxes and ended the state’s inheritance tax.

Senator Lavon Heidemann, chairman of the Legislature’s Appropriations Committee, says the amended plan is now $97.2 million. The inheritance tax remains part of state law.

Douglas County Commissioners say taxpayers could be forced to pay more if the state of Nebraska does away with its inheritance tax.

During his State of the State address, Governor Dave Heineman told lawmakers he wants the inheritance tax to end. The inheritance tax is based upon the fair market value of a property at the time of a person’s death. The amount of tax paid varies depending on the relationship between the deceased and the person who inherits the property.