McCook not alone, other Nebraska cities complain about taxes

McCOOK, Nebraska -- City officials complaining earlier this week about a lack of notice when state-operated economic development programs dip into local sales tax funds are not alone. According to an article published Monday in the Omaha World-Herald, the cities of Omaha and La Vista both announced they were hit hard by more expensive than anticipated business tax breaks that were received by local businesses.

The article also states businesses have flexibility about when to claim the refunds, leaving cities in the dark about how much it will cost each year. The article calls for legislators to consider this scenario as they conduct their review of the state's tax code.

McCook City Manager Jeff Hancock said Monday that the Nebraska Advantage Act provided roughly 30 days notice it would be claiming $31,000 in McCook sales tax funds in the upcoming year.

Hancock added that city staff discovered amounts below a certain threshold did not require any notice and $17,000 was claimed in 2012-13 budget in June, the ninth month of the 12 month fiscal year.

Hancock said he was looking to the League of Municipalities to learn more about the law.

A message left by the Gazette earlier this week with Sen. Mark Christensen's staff has not yet been returned.