greater omaha taxes

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Tangible property is assessed on the first of January each year. Tax levies vary by city, county and school district and are specific to each site location. The following table shows the most recent tax rates for selected jurisdictions in Greater Omaha.

Corporate Income Tax
In Nebraska, it is the state (not local) governments that access a corporate income tax. The Nebraska corporate income tax rates are:

• 5.58 percent for the first $100,000
• $5,580 plus 7.81 percent for income over $100,000 (rates are based on federal tax income attributable to Nebraska operations)

Taxable Corporate Income

• Direct Income Tax – applies to corporations whose business consists exclusively of foreign or interstate commerce.
• Franchise Tax – applies to corporations with any intrastate business and is measured by net income.
• Sales Only Formula – is advantageous to multi-state unitary firms that sell products and services outside Nebraska while having significant property and payroll within the state. It is equal to the ratio of Nebraska sales to total U.S. sales, multiplied by adjusted federal taxable income.
• Tax Incentives– apply to qualifying companies that are able to earn payroll and investment credits under the Nebraska Advantage Act (LB 312).

Biennial Corporation Occupation Tax
Nebraska imposes an occupation tax for the privilege of doing business in the state or existing in the state as a corporation. Domestic and foreign corporation occupation tax reports are filed biennially in even numbered years.  The next tax reporting period will be 2010-2011.  The tax rates are based on the type of corporation and include:

• Domestic corporations and domesticated foreign corporations – based on paid up capital stock.
• Foreign corporations doing business for profit and owning or using a part or all of their capital in Nebraska – based on the conduct of its business in Nebraska, which consists of the sum total of the actual value of all real estate and personal property employed in Nebraska in the transaction of its business.

Corporate Organization Filing Fees
The State of Nebraska requires domestic corporations pay corporate organization filing fees at the time of filing with the Nebraska Secretary of State. These include (note: there is a $5.00 per page recording fee in addition to the amount listed):

• Articles of Incorporation, Association or Consolidation - Fees are based on authorized capital stock:

                $10,000 or less - $60
                $10,001 to $25,000 - $100
                $25,001 to $50,000 - $150
                $50,001 to $75,000 - $225
                $75,001 to $100,000 - $300
                Over $100,000 - $300 (plus $3 per each $1,000 over and a recording fee of $5 per page)

• Amendments, Mergers and Share Exchanges – The fee is $25 plus a recording fee.
• Dissolutions – The fee is $45 plus a recording fee.
• Certificate of Authority – Foreign corporations must procure a certificate of authority from the Nebraska Secretary of State to transact business in Nebraska. The fees include:

                     Application filing fee - $130
                Withdrawal - $25

For a complete schedule of corporate fees, contact the Nebraska secretary of state’s office at (402) 471-4079 or visit www.state.ne.us/home/SOS.

Workers' Compensation
Businesses in Nebraska enjoy an average workers’ compensation manual rate of $3.58 per $100.00 of payroll for manufacturers – more than eight percent below the national payroll average of $3.90 per $100.00. In addition, Nebraska helps businesses hold the cost of workers’ compensation down by utilizing the Loss Cost Multiplier approach for determining rates. This allows insurance companies to determine the rate according to each company’s own experience.

Nebraska companies are also able to be self-insured for workers’ compensation. Qualifying companies must have at least 100 employees or reasonably expect to have 100 employees in Nebraska within one year of beginning operations in Nebraska; have a minimum of five years in business under the present organizational structure and be a corporation or political subdivision.  

Unemployment Insurance
Nebraska businesses also enjoy exceptionally low unemployment insurance rates. According to the Nebraska Department of Labor, new employers and others who are not eligible for an experience rate are assigned one of two combined tax rates as follows.  Emplyers not in the construction industry are assigned a comined tax rate equal to the state's average tax rate (category 12 on the rate table, below) or 2.5 percent, whichever is less.  

This tax rate applies to the taxable wage base of $9,000.  The latest estimated contribution per worker was $126.90 for Nebraska, which is more than 50 percent lower than the national average of $267.40 (Source: U.S. Department of Labor).