77-1031 Incentives; tiers; project requirements; refund of taxes.
77-1031. Incentives; tiers; project requirements;refund of taxes.(1)Applicants may qualify for incentives under the Nebraska Advantage TransformationalTourism and Redevelopment Act as follows:(a)(i) Tourismdevelopment project, investment in qualified property as required by thissubdivision and a net employment increase to the state. Net employment fromthe project shall be determined at stabilization of the project, typicallyby the third year, and shall include any lost jobs from semi-competitive venues.(ii) The investmentrequirement for a tourism development project is as follows:(A) Tier 1,fifty million dollars exclusive of land for a project located in a municipalitywithin a county in which the net taxable sales in the preceding calendar yearwere at least nine hundred million dollars or a municipality within a countybordered by two counties in which the total net taxable sales in the precedingcalendar year were at least nine hundred million dollars;(B) Tier 2,thirty million dollars exclusive of land for a project in a municipality withina county in which the net taxable sales in the preceding calendar year wereat least two hundred million dollars but less than nine hundred million dollars;(C) Tier 3,twenty million dollars exclusive of land for a project in a municipality withina county in which the net taxable sales in the preceding calendar year wereat least one hundred million dollars but less than two hundred million dollars;and(D) Tier 4, ten million dollars exclusive of land for a projectin a municipality within a county in which the net taxable sales in the precedingcalendar year were less than one hundred million dollars.(iii) Allcomplete project applications shall be considered by the municipality andcertified if the project and taxpayer qualify for incentives. Agreements maybe executed with regard to completed project applications. A tourism developmentproject shall be unique and not duplicate any other qualified business inthis state within (A) the same metropolitan statistical area as determinedby the United States Office of Management and Budget and (B) a fifty-mileradius of the project; and(b) Redevelopment project, investment in qualified property ofat least ten million dollars and a net employment increase to the state, exceptthat for a redevelopment project in a municipality within a county in whichthe net taxable sales in the preceding calendar year were less than one hundredmillion dollars, the requirements shall be investment in qualified propertyof at least seven million five hundred thousand dollars and a net employmentincrease to the state. Net employment from the project shall be determinedby comparing the impact of the project to the impact of not having the project.Agreements may be executed with regard to completed project applications.(2) In additionto the requirements of subsection (1) of this section:(a) The projectshall be open at least one hundred fifty days each calendar year;(b) The applicantshall demonstrate that the project is not feasible but for the incentivesprovided under the act; and(c) The applicant shall demonstrate thatthe project has conditional financing prior to completion of the applicationand final approval of financing before final approval of the application bythe municipality.(3) When the taxpayer has met the requirements contained in theagreement for the project, the taxpayer shall be entitled to the followingincentives:(a) A refund of local option sales tax up to a rate of one andone-half percent from the date of the application through the meeting of therequirements contained in the agreement for the project for all purchases,including rentals, of:(i) Qualified property used as a part of the project;(ii) Property,excluding motor vehicles, based in this state and used in both this stateand another state in connection with the project except when any such propertyis to be used for fundraising for or for the transportation of an electedofficial;(iii) Tangible personal property by the owner of the improvementto real estate that is incorporated into real estate as a part of a project;and(iv)Tangible personal property by a contractor or repairperson after appointmentas a purchasing agent of the owner of the improvement to real estate;(b) Except asprovided in subdivision (c) of this subsection for redevelopment projects,a refund of local option sales tax up to a rate of one and one-half percentpaid on all types of purchases on which the local option sales tax is leviedwithin the boundaries of the project during each year of the entitlement periodin which the taxpayer meets the requirements contained in the agreement forthe project; and(c) For a redevelopment project, if the taxpayer has beencollecting local option sales tax for more than twenty-four months prior tocompletion of the project, a refund of the increase in local option salestax revenue collected by the taxpayer within the boundaries of the projecteach calendar year after the completion of the project. SourceLaws 2010, LB1018, § 31.Effective Date: July 15, 2010