Tax receipts report for November positive

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The good economic news for Nebraska continued in November, with a report issued Monday showing that state taxes collected that month exceeded predictions.

For the month, tax collections were 2.2 percent above original projections made in April, the Department of Revenue report showed. For the first five months of the fiscal year, tax collections are 8.2 percent above projections.

However, the state’s revenue forecast was revised upward in October. By law, the tax report comparison is not changed based on that revision unless the estimate drops.

Gov. Dave Heineman has used the upward trend in tax collections as a reason to cut taxes next year. His plan calls for a $421 million tax cut spread over three years targeting sales, income and property taxes.

The Legislature will consider Heineman’s plan and any other offered by individual lawmakers when it reconvenes next month.

In November, sales taxes were 4.1 percent below projections, according to the report. Individual income taxes were up 2.9 percent, with corporate taxes up 143 percent and miscellaneous taxes up 26.5 percent.

Corporate income taxes are prone to large percentage changes because they account for a small portion of the overall tax collections. In November, for example, corporate taxes were just 0.2 percent of the total collected.

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