Nebraska Tax Collections Surpassed September Expectations by $ 100 Million | Regional government
Nebraska tax revenues continued to flow at a faster than expected pace during the first quarter of the fiscal year.
The State Department of Revenue released a report on Friday showing the state brought in $ 155.9 million more than expected from July through September. The state brought in $ 100.8 million more than expected in September alone.
That’s enough to wipe out a forecast deficit of $ 101 million – and more – for the two-year budget period that began on July 1. The deficit arose after the amount needed for Nebraska’s latest property tax relief program was factored into the state’s finances.
Record tax revenues for the just ended fiscal year forced the state to transfer $ 548 million per year into the program, under which landowners get income tax credits to offset part of the their school property taxes. State law determines the amount of credits based on growth in tax revenue.
The $ 548 million transfer meant that landowners would get credits equivalent to about a quarter of their school property taxes when they filed their 2021 income taxes. But it also reduced the amount of tax revenue available to the government. state budget.
The monthly tax revenue report showed that net income exceeded expectations for each month of the current fiscal year, with actual net income exceeding expectations by 19.2% in September.