§ 77-1031 — Incentives; tiers; project requirements; refund of taxes

Nebraska § 77-1031

• Jurisdiction: Nebraska
• Ch. 77: Revenue and Taxation

Text

(1)
Applicants may qualify for incentives under the Nebraska Advantage Transformational
Tourism and Redevelopment Act as follows:
(a)(i) Tourism
development project, investment in qualified property as required by this
subdivision and a net employment increase to the state. Net employment from
the project shall be determined at stabilization of the project, typically
by the third year, and shall include any lost jobs from semi-competitive venues.
(ii) The investment
requirement for a tourism development project is as follows:
(A) Tier 1,
fifty million dollars exclusive of land for a project located in a municipality
within a county in which the net taxable sales in the preceding calendar year
were at least nine hundred million dollars or a municipality within a county
bordered by two counties in which the total net taxable sales in the preceding
calendar year were at least nine hundred million dollars;
(B) Tier 2,
thirty million dollars exclusive of land for a project in a municipality within
a county in which the net taxable sales in the preceding calendar year were
at least two hundred million dollars but less than nine hundred million dollars;
(C) Tier 3,
twenty million dollars exclusive of land for a project in a municipality within
a county in which the net taxable sales in the preceding calendar year were
at least one hundred million dollars but less than two hundred million dollars;
and
(D) Tier 4, ten million dollars exclusive of land for a project
in a municipality within a county in which the net taxable sales in the preceding
calendar year were less than one hundred million dollars.
(iii) All
complete project applications shall be considered by the municipality and
certified if the project and taxpayer qualify for incentives. Agreements may
be executed with regard to completed project applications. A tourism development
project shall be unique and not duplicate any other qualified business in
this state within (A) the same metropolitan statistical area as determined
by the United States Office of Management and Budget and (B) a fifty-mile
radius of the project; and
(b) Redevelopment project, investment in qualified property of
at least ten million dollars and a net employment increase to the state, except
that for a redevelopment project in a municipality within a county in which
the net taxable sales in the preceding calendar year were less than one hundred
million dollars, the requirements shall be investment in qualified property
of at least seven million five hundred thousand dollars and a net employment
increase to the state. Net employment from the project shall be determined
by comparing the impact of the project to the impact of not having the project.
Agreements may be executed with regard to completed project applications.
(2) In addition
to the requirements of subsection (1) of this section:
(a) The project
shall be open at least one hundred fifty days each calendar year;
(b) The applicant
shall demonstrate that the project is not feasible but for the incentives
provided under the act; and
(c) The applicant shall demonstrate that
the project has conditional financing prior to completion of the application
and final approval of financing before final approval of the application by
the municipality.
(3) When the taxpayer has met the requirements contained in the
agreement for the project, the taxpayer shall be entitled to the following
incentives:
(a) A refund of local option sales tax up to a rate of one and
one-half percent from the date of the application through the meeting of the
requirements contained in the agreement for the project for all purchases,
including rentals, of:
(i) Qualified property used as a part of the project;
(ii) Property,
excluding motor vehicles, based in this state and used in both this state
and another state in connection with the project except when any such property
is to be used for fundraising for or for the transportation of an elected
official;
(iii) Tangible personal property by the owner of the improvement
to real estate that is incorporated into real estate as a part of a project;
and
(iv)
Tangible personal property by a contractor or repairperson after appointment
as a purchasing agent of the owner of the improvement to real estate;
(b) Except as
provided in subdivision (c) of this subsection for redevelopment projects,
a refund of local option sales tax up to a rate of one and one-half percent
paid on all types of purchases on which the local option sales tax is levied
within the boundaries of the project during each year of the entitlement period
in which the taxpayer meets the requirements contained in the agreement for
the project; and
(c) For a redevelopment project, if the taxpayer has been
collecting local option sales tax for more than twenty-four months prior to
completion of the project, a refund of the increase in local option sales
tax revenue collected by the taxpayer within the boundaries of the project
each calendar year after the completion of the project.

Legislative History

Source: Laws 2010, LB1018, § 31.