Nebraska senators stymie fight over railroad crossings

Local authorities could have a say in whether railroad crossings are closed under a bill lawmakers have advanced. Senator Russ Karpisek of Wilber was hoping to snuff out a 2006 law that could eventually close up to 200 crossings to motorists — most in small towns.

The law calls for all crossings without gates, signals or alarm bells that are within a quarter mile of another with such warning devices to be removed unless it would close the only route to property. Karpisek has agreed to an amended bill that leaves the 2006 law intact, but gives more credence to the written opinion of an engineer, who could be hired by a city. The opinion would be enough to exempt a crossing from closure under the measure (LB837) that won first-round approval Tuesday.

Nebraska gas prices could lag national peak, AAA says

Retail gas prices could climb as high as $4 a gallon this summer, but prices at such lofty levels will make many Americans think twice about hitting the road this summer, the Energy Department said Tuesday. Nonetheless, Nebraskans appear to be making plans for more travel in the late spring and early summer, according to AAA Nebraska.

Average monthly gas prices will peak around $3.60 a gallon in June, the Energy Department said. However, prices could rise much higher than that at times. “It is possible that prices at some point will cross the $4 per gallon threshold,” the EIA said. In Nebraska, motorists can expect a range of from $3.40 to $3.60 this summer for self-service unleaded, said AAA Nebraska spokeswoman Rose White.

Bill to move State Fair to get another look

Lawmakers will have a chance to reconsider whether the State Fair should move to Grand Island. A bill (LB1116) that is up for a second round vote on Wednesday calls for the fair to move to Grand Island by 2010. That would allow the current fairgrounds in Lincoln to become home to a mix of public and private research facilities supporters say will spur job growth.

Lawmakers voted 44-3 to give first-round approval to the bill last week. The move to Grand Island would cost about $42 million. About half the money would come from the University of Nebraska, which plans to develop the research park. The city of Grand Island would pitch in more than $8 million, the State Fair board $7 million, and the state $5 million.

Gov. Heineman Signs Tax Relief for Nebraska Businesses into Law

Gov. Dave Heineman today signed LB888 into law. The bill lowers taxes for Nebraska businesses and is the first adjustment to the state’s corporate tax brackets since 1982. The bill provides tax relief that is aimed at small businesses by extending the lower tax bracket for corporate income tax filers. “This law will have a positive impact on our ability to attract new businesses to our state and keep our existing businesses growing,”

Gov. Heineman said. LB888 was introduced by Sens. Carroll Burling of Kenesaw, Tim Gay of Papillion, Pete Pirsch of Omaha, and was prioritized by Sen. Scott Lautenbaugh of Omaha. Nebraska Tax Commissioner Doug Ewald said, “While all businesses that file as corporations will benefit from this law, our 1,200 small businesses will experience the greatest positive impact.” The Tax Foundation reports that of the surrounding states with a corporate income tax, only Iowa had a higher corporate tax than Nebraska. Nebraska had the second highest rate and the 17th highest rate nationally. Barry Kennedy, president of the Nebraska Chamber of Commerce & Industry, said, “LB888 is a sensible and fiscally-sound fix. With the enactment of this important legislation, state senators and the Governor have significantly improved Nebraska’s tax policy and business climate.

LB888 provides Nebraska’s small businesses their own economic stimulus package –- one which will boost business investment, create new jobs and keep the state’s economy on track for long-term growth.” The Legislature passed LB888 on Monday 48 to 0.

Nebraska Legislature approves ignition locks, sales tax on digital downloads

First- and second-offense drunk drivers would be required to drive cars equipped with ignition interlock devices under a measure given 43-0 final approval Tuesday by the Legislature. LB736, introduced by State Sen. Tony Fulton of Lincoln, now goes to Gov. Dave Heineman.

Also Tuesday, lawmakers voted 34-4 to send the governor a bill (LB916) that would impose Nebraska sales taxes on music, movies and books downloaded from the Internet, beginning Oct. 1.

A coalition of businesses, including Apple, had opposed LB916. Supporters said the bill is a clarification of existing law. The Nebraska Supreme Court ruled in 1992 that digital versions of products should be taxed the same as if they were tangible products, although the state has not enforced the tax. LB916 results from Nebraska’s participation in the Streamlined Sales and Use Tax Agreement, a multi-state effort to simplify sales tax rules and encourage online and mail-order retailers to voluntarily collect state and local sales taxes from customers.

Invest Nebraska, NDED Sign $500,000 Contract to Promote Angel Investment in Nebraska

Invest Nebraska Corporation, a non-profit organization committed to assisting emerging Nebraska-based businesses with fund-raising and business development efforts, has announced it has entered into a $500,000 contract with the Nebraska Department of Economic Development (NDED).

Under the agreement, Invest Nebraska will carry out a state-mandated program to promote angel investment in Nebraska. The funding for the program is derived primarily from state appropriations, approved by the Nebraska State Legislature.

Under the contract, Invest Nebraska will match at least one-third of the funds. This goal is to create a state-wide angel investor network to help Nebraska businesses in the early stages of fund-raising. Angel investors are typically the first investor outside the scope of “family and friends”, and allow emerging businesses to build up to venture capital and private equity investments.

Eligible candidates for angel investments include any individual, corporation, partnership, limited liability corporation, or joint-stock company, with its principal place of business in Nebraska. The program will also extend to start-ups elsewhere that are committed to basing their business in Nebraska. For more information about Invest Nebraska Corporation, visit www.InvestNebraskaCorp.com

Companies expanding in Nebraska now have more “advantages” to choose from

LB895, passed by the Legislature and signed by Gov. Dave Heineman earlier this year, adds another tier to the successful Nebraska Advantage package of incentives for businesses that relocate to or expand in the state. Businesses will qualify for the Super Advantage if they invest $10 million while creating 75 jobs paying either 200% of a county’s average wage or 150% of the state’s average wage, whichever is greater. Businesses also will qualify if they invest $100 million capital investment while creating 50 jobs at the thresholds stated above.

These wages range from $50,700 (160% of State’s average annual wage) to $91,972 (200% of Stanton County’s average annual wage). In return for a company’s investment and job creation, they would receive a 15% investment credit, 10% wage credit, tangible personal property exemption for 10 years, and a sales tax refund on all capital purchases. In addition, the company may use the credits to offset their real property taxes at the site of the project, as well as apply them to sales and income taxes, and employee withholding. The entitlement period is 10 years for these benefits as opposed to the next highest entitlement period of seven years.

Nebraska gas station owners make little profit from gasoline sales

Patricia Tillotson and her husband own a convenience store in Battle Creek. Tillotson said customers now understand the high pump prices at Tilly’s Gas & Shop and other gas stations around the country aren’t the fault of the station owners. Like most stores of its kind, Tilly’s makes a majority of its profit from grocery and other convenience items.

Tillotson said it’s difficult to keep a small business operating in a small town when the cost of everything is increasing. “I’ve heard a lot of people say, ‘We’re not even bothering to get the camper out,’” she said.

Hal Seeley, who opened Four Seasons Mini Mart in Pierce with his wife, Mary, earlier in the year, said gas station merchants make very little - if anything - on the sale of gas. “Quite often, we’re making only three to five cents a gallon,” he said. But when customers use a credit card to purchase fuel, there are charges and fees that have to be paid that often subtract from what minuscule profit there is, he said.

Petition filed to repeal law moving Nebraska State Fair

Nebraskans may be able to vote on whether to move the state fair from its longtime home in Lincoln to Grand Island. A referendum petition to repeal a new state law authorizing the move was filed Monday with the Secretary of State’s office. The Grand Island Independent reports that seven people from Omaha and Lincoln filed the petition.

To get the referendum on the November ballot, about 60,000 signatures would need to be collected. According to the Secretary of State’s Web site, petitions to repeal a state law are valid if the signatures are received within 90 days of the adjournment of the Legislative session.

Lawmakers finished their work on April 17, which means the signatures are due in mid-July. In April, Gov. Dave Heineman signed legislation that will move the Nebraska State Fair to Grand Island by 2010. The law was the culmination of months of deal-making between parties interested in having the fair, state officials and UNL.

Nebraska’s economy slows in May

Information businesses in Nebraska — such as publishing companies — struggled in May and inflation continued to be a concern. That’s according to a new survey of supply managers and business leaders in the state. Creighton University economics professor Ernie Goss oversees the monthly survey. The problems for information companies in the state offset strong performances other businesses reported.

Durable goods producers in the state — especially ones with strong ties to the farming — reported strong growth for May. The state’s overall economic index slipped in May to 50.3. The rating was 51 in April. Any score greater than 50 on the index indicates an expanding economy over the next three to six months.