Nebraska tax receipts remain above projections in December 2021
Nebraska’s state tax revenues remained above projections overall at the end of calendar year 2021. According to the most recent Nebraska Department of Revenue news release, although miscellaneous tax revenues were 28.5% below forecast, net revenues for December 2021 were $509 million or 7.4% above the certified forecast.
December tax refunds were also $6 million lower than expected, producing a nearly $35 million increase in net receipts over projections for the month.
In October, the Nebraska Economic Forecasting Advisory board upgraded its revenue forecast for the fiscal year. At the moment, actual receipts are exceeding those higher projections by 2.7%, or an additional $74 million.
This is good news with the 2022 legislative session now underway. In his State of the State address to the Nebraska Legislature, Gov. Pete Ricketts indicated that providing tax relief, particularly on income taxes, was one of his four top priorities for 2022.
Members of the Legislature are currently introducing their bills for the session, and senators have already brought forward legislation to lower personal and corporate income tax rates, with more bills forthcoming as of this writing.
The Platte Institute will be monitoring these proposals closely and working with senators to advance those that seek to modernize our state’s outdated tax code and help grow Nebraska’s workforce and economy.