Turnback Tax

Wolf Pack Sports Foundation’s cheer athletics facility, as envisioned at 202nd Street and Nebraska Highway 370 in Gretna. The City of Gretna is a co-applicant in seeking state assistance through the Sports Arena Facility Financing Assistance Act. (Courtesy of Alley Poyner Macchietto Architecture via Nebraska Examiner)
Governor Pillen claims to be a champion for the children.
Unless those children want to play competitive volleyball, soccer, basketball, baseball, gymnastics, or be a cheerleader, I guess.
Last week, during an almost five-hour meeting of the Sports Arena Facility Financing Assistance Act Board, no action was taken on moving forward on proposals to use a turnback tax to build facilities to accommodate these youth sports activities.
Governor Pillen failed to show up for the hearing once again. He has failed to show up for many of the previous meetings. The governor’s vote is needed to move the project forward. After the board gives its approval, it goes to a vote of the people.
These facilities, as currently envisioned, will generate growth around them like hotels, restaurants, condos, apartments, and shopping. It will be much like the growth we’ve seen surrounding the CHI Center and Charles Schwab Stadium.
Nebraska has a turnback tax law that is meant to offer support to build entertainment and athletic venues that create jobs, add more sales tax revenue, and improve the quality of life.
The governor has said that no action will be taken until the sales tax laws are revamped to include products and services that are currently sales tax exempt. He’s using it as a leverage tool to get the property tax relief that he and previous administrations have failed to get.
Perhaps he doesn’t realize these projects will generate more sales and property tax revenue. Increasing the tax base can help him achieve his goal.
The way this turnback tax works is that the sales tax generated from these new projects will help pay for the facility. The sales tax turnback only applies to new businesses 600 yards from the building. Since these are new businesses, there is no sales tax currently being generated. The state loses nothing. It doesn’t apply to existing businesses in that area or any other business outside those 600 yards.
These facilities will generate more property tax revenue. While the facility itself won’t pay property taxes, all the new buildings surrounding it will. Expanding the property tax base can help lower the property taxes for the governor’s hog farms and the rest of Nebraskans as well.
Nebraska has historically done a piss poor job in attracting tourists. I’ll never understand how South Dakota can get so many people to visit Wall Drug, and we can’t get more folks to see the Sandhills, visit our golf courses, or spend time on our farms the way city slickers visit Arizona dude ranches.
These sports facilities bring in families from surrounding states and will keep Nebraska families from taking their wallets out of state to attend events in places that already have similar facilities.
Jeff Weak is the president of EMJ Consulting. He’s worked closely with Brett Lindstrom to get this turnback tax passed in the Unicameral. He is frustrated that there are at least eleven projects statewide that could benefit from it, but the governor does nothing.
Prior to the meeting, Weak said, “If it passes, we go to work. If it doesn’t, we go to war.”
Well, it didn’t pass, so look forward to some political fireworks in the near future.
I understand Governor Pillen’s desire to offer property tax relief. I doubt there are many Nebraskans who don’t want to see property tax relief.
But the governor shouldn’t let the perfect get in the way of the good.
Of the projects currently on the table, including possible future projects like the downtown professional soccer stadium, there may be some that just don’t make sense. And if, after proper vetting, that’s the case, then don’t approve those projects. But don’t throw the baby out with the bathwater.
Study these projects that are currently on the table. And give them all a fair shake. When completed, they will generate jobs, tax revenue, and improve the quality of life for not only Nebraska families but families from throughout the region.
It’s time for Governor Pillen to start acting like a governor. But he shouldn’t make people take time off work to travel across the state to attend a hearing he doesn’t have the courtesy to attend. Prove that his concern for children is more than just a campaign slogan. It’s time for him to attend these board meetings and vote to move these projects forward and let the voters decide.
By utilizing the Sports Arena Facility Financing Act, it will continue to ensure that Nebraska is truly the Good Life State.
Tom Becka is a long time Nebraska broadcaster who for over 30 years has been covering Omaha and Midwest issues on both radio and TV. He has been a guest on numerous national cable and news shows, filled in for nationally syndicated talk radio programs and Talkers Magazine has recognized him as one of the Top 100 talk show hosts in the country 10 times. Never afraid to ruffle some feathers, his ‘Becka’s Beat’ commentaries can be found online on Youtube and other digital platforms.
Opinions expressed by columnists in The Daily Record are not necessarily those of its management or staff, and do not constitute an endorsement or recommendation. Any errors or omissions should be called to our attention so that they may be corrected. Contact us at news@omahadailyrecord.com.
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