Get ready for a good old-fashioned “wrestling match” where Nebraska law provides additional property tax relief against “tax liability.”
On Friday, legislature’s top budget observer, Senator John Stinner von Gering, rejected a move by Governor Pete Ricketts to trigger additional tax breaks through a new state tax credit.
Stinner said the governor is breaking the spirit of a law passed last year that triggers an increase in tax credits if state tax revenues increase by at least 3.5% a year. Loans increase even more when revenue increases by that amount and the state’s cash reserve is above $ 500 million.
The cash reserve is expected to be slightly below the value of $ 500 million at the end of the fiscal year on June 30th. As such, Ricketts approved the transfer of an additional $ 88 million to the fund to “fully mechanize” and trigger the additional tax relief, which would amount to approximately $ 173 million.
When asked about claims that he was “artificially” triggering the additional tax credits, Ricketts said he was actually upholding the law’s intent to provide more tax credits if the state’s economic growth allowed it. He said some government money transfers would not take place until July 15, a few days after the fiscal year ended, and if they were factored in, revenue growth would have been enough to trigger the tax break.