Nebraska took less tax revenue into the state’s General Fund than expected.
Tax Commissioner Tony Fulton says net receipts are 4.9 percent below the certified forecast.
“We’re still languishing with respect to the projections,” Fulton tells Nebraska Radio Network, “so as the governor has stated, we need to keep a close eye on revenues coming in and the expenditures state government is making.”
Net General Fund revenue is down 1.1 percent for the current fiscal year, which is about $19 millions.
“We have a responsibility in government to match our expenditures to what revenues are coming in, just the same way that businesses and small businesses and families do,” Fulton explains. “We’ve talked about the agencies’ necessity to rein in spending.”
The sales and use tax and corporate income tax really missed the forecast mark, according to Fulton.
“We attribute that probably to the ag economy – well, definitely to the ag economy – and probably we are seeing some of the results of sales being conducted over the internet, for which taxes aren’t being collected,” he says.
Businesses are only required to collect sales taxes online if they have a physical presence in the state, such as a store or warehouse.
Along with November, actual tax receipts in July, August, and September were also lower than the forecast amounts.
“This is something where we need to be sober and alert, because the revenues are lagging our projections,” Fulton says. “We have to keep an eye on it.”