Nebraska City sales tax just below budget
City's lodging tax increases while trend for rising taxable sales levels off
By News Channel NebraskaNEBRASKA CITY – Nebraska City’s sales taxes came in just over $10,700 below budget.
City Administrator Perry Mader: “It was close, but as you look at the final report, two of the 12 months were over what we had last year. … the last month I was hoping would trend up a little bit, but it ended up below as well.”
Mader called collections in a couple of months “eye popping” but explained the decline was due to the termination of a half cent sales tax approved to building the aquatic center.
In 2024, the city budgeted $2.4 million in sales tax but collected $2.8 million.
With the half cent pool project coming off, the city budgeted $2.6 million this year and came to within about $10,000.
Mader said the lodging tax was up. The city budgeted $260,000, but collected $330,000.
Mader: “People are still traveling and staying in the hotels. There just not getting out and spending as much.”
Up to 12 percent of sales tax proceeds above $1.3 million go to the Growth Fund. Since voters approved the LB840 funds, the sales tax has increased each year from $1.5 million to over $2.5 million.