Nebraska Tax Overview
January 18, 2001
It is more beneficial to consider taxes as a payment for government services. We choose to be taxed to pay for all the government services such as roads, highway safety, state parks, state universities, or any other government service. When speaking of taxes, the average citizen is familiar with the major taxes listed below:
- State Income Taxes
- Local Income Taxes (if any)
- Property Taxes
- Sales Taxes
- 100's of Miscellaneous Taxes
However, these simple categories are quickly lost as the money is pooled, appropriated, and finally spent.
Informed Nebraska citizens should have an insider's understanding of the Nebraska Tax System. Most discussions or newspaper accounts regarding Nebraska taxes are limited to a specific tax or its impact on the General Fund. However, a more fair, comprehensive, and practical understanding of Nebraska taxes comes examination of both state and local taxes that make up the Nebraska Tax System can be obtained by combining three separate tax or [using the broader term] revenue categories:
- State General Fund
- State Cash or Trust Funds
- Local Property Tax Fund
- Other Tax Funds
Taxes make up the majority of revenue that funds the appropriations in the state budget. Once the money is spent, it is listed as actual expenditures. Not all revenues are in the form of taxes. Certain revenues such as income from University of Nebraska Medical Center or tuition at UNL are not considered taxes, however, these and over 290 other cash proceeds are part of the Cash fund and are used to pay expenditures such as operating expenses. I am including them in the analysis for informational purposes.
For now, consider that the state spends all its revenue; therefore the total of all revenues equals the total of all appropriations or expenditures. If there is money left over, it is a surplus. If there is a shortage, it is a deficit.
Nebraska State and Local Tax Flow 1992-19931.
Note: The following charts can be linked together. The height of each color is in relative proportion to the total budget (revenues & expenditures).
Nebraska taxes (aka Revenue) consist of the following:
- Property Taxes
- Local Taxes, Interest, Fines, Tuition and Fees
- Motor Vehicle Registration Fees
- Sales Taxes
- Individual and Corporate Income Taxes
- State Miscellaneous Interest Taxes and Fees
- Motor Fuel Taxes
The above mentioned revenues are often separated into three major categories discussed under Nebraska Tax Revenue.
Nebraska Taxes are levied or collected by the following:
- School Districts and Educational Service Units (ESUs)
- Counties and Misc. Districts
- Cities and Sanitation Improvement Districts (SIDs)
- Highway Trust Fund
- Community Colleges
- State General Fund
Nebraska Funds are spent by the following agencies:
- School Districts and ESUs
- Counties and Miscellaneous Districts
- Cities and SIDs
- Community Colleges
- State Highway Funds
- Sate General Fund Operations
Nebraska expenditures (aka Appropriations) consist of the following:
- K-12 Education
- Public Safety
- Quality of Life
- Corrections
- General Government
- Transportation
- Human Services
- Higher Education
References
1.Flow chart[s] prepared by Nancy Cherrington, Legislative Research Division, for the Revenue Committee, Nebraska Legislature, August 1994.
Created: January 20, 2001
Modified: March 6, 2001
Author/Comments?: KJG