Arena tax dollars coming in on target
The city of Lincoln began charging the new occupation taxes — which are usually passed on to consumers — in January. The first batch of taxes were due in late February — although bars and restaurants can choose to pay the tax quarterly — and Finance Director Don Herz told the Joint Public Agency that oversees the arena project that the city collected about $743,000.
“I’m very comfortable with those numbers,” Herz said. In fact, depending on the final numbers that come in by April, he said the tax revenue “may slightly exceed” the city’s projections. Car rental and hotel businesses are seasonal, he said, and will fluctuate.
Speaking of occupation taxes, the Journal Star is reporting that the Legislature is on the verge of taking away the city’s authority to charge occupation taxes on the sale of telecommunications equipment. The city of Lincoln broadened this tax from services to equipment last year, but the Legislature was lobbied heavily by retail groups to rein the city in. Looks like a compromise would allow the city to keep the tax until 2013 — giving the city breathing room for awhile.