All contractors in Nebraska must register

An expanded state law that goes into effect July 18 requires contractors and subcontractors doing business in Nebraska to register with the state. The expanded law also increases the registration fee, from $25 to $40, said Bill Hetzler, director of safety and labor standards for Nebraska Workforce Development/Department of Labor in Omaha.

Failure to register can result in a fine up to $500 for a first violation and up to $5,000 for a subsequent violation, Hetzler said. A person who is self-employed and does not pay more than $3,000 annually to employ others in the business is exempt from the $40 fee, but must fill out an affidavit with an application. Contractors can fill out the registration application under the “labor/safety laws” section at www.nebraskaworkforce.com, but the application must be printed out and mailed in with a check for the $40 fee, Hetzler said. More information is available by calling 402-595-3095.

State warns against Internet loan scheme

The Nebraska Department of Banking and Finance warned Thursday against dealing with a company calling itself Penbrook Financial Group and giving a fictitious Omaha address. The department said Penbrook offers personal loans over the Internet and requires upfront “collateral payments” before making loans, usually $2,460 in four monthly payments.

The company does not have an office at the address it lists, the department said, and Nebraska law prohibits lenders from requiring advance payments. The department said it is trying to shut down the company’s Web site, which does not list a telephone number. The company could not be contacted for comment. People who have dealt with Penbrook should contact the department at 877-471-3445 or the Federal Trade Commission at 877-382-4357.

Department analyst Karen Reynolds said people should be careful about making online loan applications that require personal information. Online lenders may try to bypass state law by claiming residence in a different state or may adopt the name of a legitimate business.

Bill cutting corporate tax becomes Nebraska law

Gov. Dave Heineman signed a new law Wednesday that will cut most Nebraska corporations’ income taxes by up to $1,120 per year. LB888, introduced by State Sen. Carroll Burling of Kenesaw, raises the lowest corporate income tax bracket by $50,000, to a maximum of $100,000 annual income. That means a corporation can earn up to $100,000 per year and still be taxed at the lower rate of 5.58%. Higher earnings still will be taxed at 7.81%. State tax officials said the new law have the greatest impact on about 1,200 small corporations that generate between $50,000 and $100,000 income each year.

Heineman said the change represents a significant amount to small businesses. “This will help more of our home grown businesses develop and prosper,” he said. Barry Kennedy, president of the Nebraska Chamber of Commerce and Industry, said his group has sought the corporate income tax change for several years. Burling said corporate income tax brackets have not been adjusted for 25 years and that inflation alone had served to put many smaller corporations in the higher bracket.

State fair one step closer to moving to Grand Island’

Nebraska’s Legislature gave second-round approval April 9 to a bill that would relocate the Nebraska State Fair from Lincoln to Grand Island. Introduced by Bayard Sen. Philip Erdman, LB1116 would move the state fair to Grand Island’s Fonner Park by 2010 and create a State Fair Relocation Cash Fund to collect contributions for the move. The $42 million cost to rebuild the fair would be shared as follows: $21.5 million from the University of Nebraska; $8.5 million from Grand Island; $7 million from the Nebraska State Fair Board; and $5 million from the State of Nebraska.

The bill contains provisions of LB1115, an Erdman bill that would change the makeup of the State Fair Board by redefining the qualifications for the four appointed members representing the business community to provide that three of them be selected from congressional districts and one be selected to represent Grand Island’s business community. Erdman explained that a group called Vision 2015, comprising Lincoln business and civic leaders, first proposed moving the state fair in 2006 to allow the current fairgrounds to be developed by UNL into a public-private partnership research park.

Erdman said the Legislature’s Agriculture Committee worked with a consultant to help determine the most suitable amenities and location for the state fair. Civic and business leaders from Grand Island proposed moving the fair to Fonner Park to capitalize on its recently completed Heartland Events Center. A technical amendment was adopted 39-0 and LB1116 advanced to final reading by voice vote.

Nebraska lawmakers hope to remedy rural vet shortage

A shortage of veterinarians in rural counties has persuaded state lawmakers to take action. The Legislature gave first-round approval to a bill (LB1172) on Tuesday that could lure food animal veterinarians to areas of the state with vet shortages by giving them $80,000 each over four years.

Sen. Cap Dierks, a veterinarian from Ewing who introduced the measure, says there are 13 counties in the state with no food animal vets. He argued vets are needed to safeguard the food supply, and pointed out that Nebraska is a leader in meat production. Sen. Ron Raikes of Lincoln said the bill isn’t needed because many of the services traditionally provided by vets are now done by farmers and ranchers.

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.