City shortfall could grow
By Maggie O'Brien
WORLD-HERALD STAFF WRITER
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•Big staff turnout on city budget
The City of Omaha's budget hole is about to get $6.5 million deeper after a large local company notified the Suttle administration that it intends to file for a refund of sales taxes it has paid, a spokesman said.
The "major downtown corporation," which the city declined to identify, notified the city of its intent to seek the refund under state tax incentives, either the Nebraska Advantage Act or Legislative Bill 775, said Ron Gerard, spokesman for Mayor Jim Suttle.
The city is in the early planning stages for its next budget and already faced a shortfall this year of more than $9.5 million. If, as expected, the sales tax rebate is granted, that shortfall could eclipse $16 million.
Under state tax incentives, companies that might qualify for rebates pay even the sales taxes they expect to reclaim as rebates. They then go through an auditing process to verify they created the jobs promised or invested what was pledged.
Once complete, they can claim the refund.
As of Wednesday night, the company had not yet filed any paperwork with the state, Gerard said.