Ricketts looks to avoid revenue surge from federal tax law
LINCOLN, Neb. (AP) — Gov. Pete Ricketts is looking to avoid an estimated $220 million state revenue windfall that will take place if Nebraska doesn’t adjust its tax system to account for the new federal tax law.
The Department of Revenue unveiled its recommendations Thursday to account for the myriad federal tax changes. Tax Commissioner Tony Fulton, a Ricketts appointee, says he was directed to “neutralize” the effects of the federal law so the state won’t collect any more or less revenue from taxpayers.
Nebraska’s tax code is closely tied to the federal system, so federal changes can cause swings in state tax collections. The state currently faces a projected $173 million state revenue shortfall and proposed budget cuts.
Sen. Jim Smith of Papillion has introduced a bill to adopt the department’s recommendations.