The Nebraska Dept of Revenue says net state tax receipts for June and for the fiscal year that ended in June easily topped the official projections by the Nebraska Economic Forecasting Advisory Board in February.
Net receipts for June were $612.5-million dollars, topping estimates by $55.6-million or an even 10%. The state finished the fiscal year with $6.35-billion dollars, topping expectations by just under $624-million or 10.9%.
The year’s surplus will bring the state’s Cash Reserve Fund to $1.69-billion billion, which represents 36.1% of annual spending.
Net individual incomes taxes In June were $292.2-million, almost $50-million or 20.6% over estimates while corporate income taxes were $115.4-million with a $28.8-million or 10.6% surplus.
Miscellaneous taxes of $42.9-million were over projections by $8.6-million or 28.5%, but sales and use taxes were $38.8-million or 16.4% under at $162.1-million.
For the full year, net individual income taxes led the way with $3.2-billion dollars, followed by sales and use taxes at $2.1-billion. Corporate income taxes totaled $715.2-million while miscellaneous taxes came in at $257.5-million.
Individual income taxes topped forecasts by the most, both in terms of percentage at 20.1% and in dollars with a surplus of $543.3-million.
Next came corporate income taxes with a $110.2-million or 182% surplus, then miscellaneous taxes with an additional $17.5-million or 7.3% than projected. Sales and use taxes failed to reach predictions by 46.8-million dollars or 2.1%.
Compared to the previous fiscal year, Nebraska’s net tax revenue jumped by almost $390-million or 6.54%. All 4 tax categories were higher than a year, led by corporate incomes with an increase of $143.9-million or 25.2%
Governor Pete Ricketts says having the Cash Reserve “substantially more than what is needed sets the next Legislature up with a prime opportunity to build on the historic tax relief delivered to Nebraskans in 2022.”
OpenSky Policy Institute Executive Director Rebecca Firestone remains skeptical, calling the strong figures “good news” but cautioning against both new tax cuts and new spending until it’s clearer what direction Nebraska’s economy is taking.