Business climate likely to keep Legislature busy

In the latest tax climate rating, Nebraska ranked 46th among the 50 states, making it a challenge to recruit new businesses and industry to the Cornhusker State. However, the tax disadvantage is offset in part by LB 775, the economic incentive bill which rewards companies which invest more than $30 million in the state and create 30 or more new jobs.

That complicated situation -- the source of continuing controversy in the state -- is among the many issues being examined this summer and fall as Nebraska prepares for the 2005 legislative session.

Should Nebraska keep LB 775, which has produced tax rebates to companies totaling between $150 million and $170 million per year? Or should the state use another approach, such as eliminating personal property tax, which costs Nebraskans between $125 million and $130 million per year?

The entire issues of taxes and economic incentives is being brought to the table this year by the Nebraska Chamber of Commerce and Industry and other state organizations. After a major study of the effects of taxes on economic development -- which showed Nebraska near the top in taxes and near the middle in incentives -- the state chamber is touring the state to get business leaders' opinions at a series of Legislative Forums.

At this morning's forum at the McCook Clinic Multi Purpose Room, State Sen. Tom Baker of Trenton said he expects an all-out effort in the 2005 session to implement changes in both the state's tax structure and the economic development incentives. "I expect three or four different bills, which may get tied into one bill before it's over," the senator said. Baker himself will lead an effort to repeal the personal property tax, which he sees as a major barrier to business development.

Among other issues the Trenton senator sees emerging in 2005 are:

* Efforts to regulate the wireless communications industry, with the aim of improving service quality;

* A step-up in funding for road construction, with part of the money coming from an increase of two cents per gallon in the permanent fuel tax, raising the amount from 12.5 cents to 14.5 cents per gallon;

* Changing Worker's Compensation rules for agricultural producers; and:

* Finding some way to cope with the staggering water changes faced by the state's irrigators, municipalities and recreational users.

The 2005 session is the longer of the legislature's annual meetings, lasting until late May or early June. Good thing. Judging by what the senator had to say this morning, it looks like there's going to be a a multitude of issues to talk about.