(The Center Square) – Nebraska collected more revenue than expected in Fiscal Year 2022-2023.
It collected $6.37 billion over the entire fiscal year, $3 million more than projected. The state will put the excess revenue in its Cash Reserve Fund.A strong June 2023 to close out the fiscal year was the difference-maker. Over those 30 days, the state collected $673 million, which was $55.7 million more than projected, meaning that entering June, Nebraska looked like it would underperform its fiscal year projections.“This is great news, as we continue the work of providing transformative tax relief to Nebraskans,” Governor Jim Pillen said in a press release. “We continue to work with state agencies to constrain spending. We worked with the Legislature to pass one of the most fiscally conservative budgets in state history – limiting growth to 2%. Those measures, combined with the increase in tax receipts, bodes well for the stability of our state’s economy.”The better-than-expected collections come a month after Governor Pillen signed tax cuts into law.The tax cut bills, LB243 and LB754, do the following, according to the governor’s office: Increases the amount of relief granted under the Property Tax Credit ActEstablishes a 3% annual cap on how much school districts can increase property tax requests, with some exceptionsEliminates the 5% cap on the school district tax credit’s allowable growth percentage under the Nebraska Property Tax Incentive ActCurtails levying authority and provides state aid to community collegesReduces the top individual and business income tax rates to 3.99% by tax year 2027Delivers full tax exemption for Social Security benefits a year early in 2024Provides tax credits related to child care, for families and providersThe governor signed these tax cuts into law on May 31, 2023.
