Nebraska Bill Would Allow Tax Break For City Projects

By: Associated Press Email
By: Associated Press Email

A Nebraska state senator has introduced legislation that could save the city of Omaha an estimated $7.5 million in sales and property taxes each year.

Omaha Sen. Burke Harr submitted a bill Monday that would change state law on tax exemptions for nonprofit corporations that help develop public buildings.

The nonprofit corporations issue bonds to acquire and build public buildings, and then lease them to cities. The lease payments cover the corporation's debt, and the city gets the building title once it's paid.

Cities, counties and other government bodies often use lease-purchase agreements as an alternative to issuing bonds, which require voter approval.

The Nebraska Department of Revenue has declared that such corporations are not government property, and therefore not entitled to sales or property tax exemptions.

Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WOWT NBC Omaha 3501 Farnam Street Omaha, NE 68131 (402) 346-6666
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 137005538 -
Gray Television, Inc.