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.

Western Nebraska road repair delays blamed on costs

The needs of the Nebraska Department of Roads continue to be many despite a decrease in state funds. Craig Lind, Nebraska Dept. of Roads District 5 engineer, told the Gering Business Club on Wednesday that creative solutions are needed to deal with the demands for road repairs or new highways when there continues to be less money available for such projects. Lind said the way Nebraska taxes and supports highway construction will probably have to change because of the use of fuel-efficient hybrid vehicles and those that use alternative fuels.

Nebraska roads projects are funded, in part, with proceeds from fuel taxes, and that money has continued to decline as motorists drive fewer miles because of increased fuel costs. Lind said in fiscal year 2008, the district would have about $18.2 million in funding available for projects, and projections indicate that number might be cut to $12 million in fiscal year 2009.

With increases across the board for materials and other fixed costs, not as much work can be done as in the past. The cost of asphalt, for example, has increased from $120 a ton to $470 a ton.

Group, state team up to lure angel investors

Invest Nebraska Corp. has partnered with the Nebraska Department of Economic Development to promote angel investment as a source of funding for some Nebraska businesses. Angel investors are wealthy individuals who are interested in funding high-growth startups. Invest Nebraska, a nonprofit group that helps fledgling businesses with high-growth potential take flight, has committed to a two-year program that will include business plan competitions, seminars for potential investors and the formation of a statewide network for angel investment groups.

Angel investors are typically the first place that companies turn to acquire funds to accelerate business expansion, said Bryan Fairfield, an Invest Nebraska board member. The expansion of angel investments is important to the state because fast-growing businesses have a substantial economic impact by creating jobs, wealth and a higher tax base, Fairfield said.

Angel investment creates a cyclical process of reinvestment in the community because the high returns investors receive allow them to continue to invest in other startups, he said. Targeting high-growth businesses in Nebraska will aid economic development by encouraging existing businesses to stay here, attracting businesses from other states and encouraging startups, Fairfield said. Implementation of the plan should start in June, Fairfield said.

Imperial, Neb. Senator: Override on fuel tax doubtful

There may not be enough votes to override Gov. Dave Heineman’s veto of an increased gas tax that lawmakers approved in the state budget, said Sen. Mark Christensen of Imperial. Christensen said he voted for the increase, that would raise fuel prices about a penny per gallon, because he believed in a self-funding system — where those who use the roads pay for the costs — and that the increase would help fund roads in western Nebraska.

“If we don’t use the tax increase, western Nebraska will have decreasing road quality,” he said at the McCook Chamber of Commerce Legislative Conference call this week. A self-funding system would be preferable than using cash reserves this year, he said, because it could be a tough financial year next year. Cuts might need to be made in the budgets of the University of Nebraska and the K-12 school system, he said.

“If there’s a shortfall in the budget, the schools are hit,” he said. Another bill proposed by Sen. Deb Fischer of Valentine would change the way fuel taxes are levied and collected and would add another 3.3 cents per gallon. Christensen said he opposed tax increases in general but stood by his assertion that this increase would benefit his district in the long run. Still, he welcomed opinions from his district concerning the fuel taxes.

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

Nebraska Wine Tour rewards visitors for touring state wineries

The Nebraska Wine and Grape Growers Association is pleased to announce the 2008 Nebraska Wine Tour as a way to encourage visitors to experience one of the state’s most unique industries. Visitors are given wine tour “passports,” and earn stamps each time they complete a tour or tasting at any of 23 participating vineyards and wineries spread throughout the state.

Visitors collecting a minimum of 15 different winery stamps in their passports will receive a $50 gift certificate redeemable at any participating Nebraska winery. Visitors collecting all 23 stamps will receive a $75 winery gift certificate. All participants are eligible for prize drawings that include a $50 Nebraska gift basket, a case of Nebraska wines, and a bed and breakfast getaway for two. Stamps are available through December 31, 2008. The tour is produced in part by a grant from the Nebraska Division of Travel and Tourism.

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.

Land-line phone service remains a popular choice in Nebraska

At a time when cellular phones are becoming increasingly popular, the traditional land-line telephone is still a staple in many homes and businesses. During power outages, those with traditional telephone service and a corded phone shouldn’t have any problems accessing a telephone line, especially because the network is mostly buried, said Eric Carstenson, president of the Nebraska Telecommunications Association. Traditional land-line services provide evidence that, while wireless telephones offer a compatible service, they’re not a reliable replacement, Carstenson said.

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.