$250,000+ Collected in First Month of Good Life District

Grand Island, Neb. — The voter-approved Good Life District Occupation Tax took effect on October 1, and initial returns are in. The City of Grand Island collected an additional $254,812, reflecting collections from the first full month of the new tax.

The Good Life District Economic Development Program occupation tax has been in effect since October 1, and businesses impacted by the Good Life District collected the tax during October and remitted it to the city in November.

“The City Council established the Good Life District Economic Development program to facilitate the construction of transformational projects that will create new job, bring a significant amount of tourism to Grand Island and generate new market sales that will replace the sales tax revenue the State of Nebraska has given up in order to spur economic growth in Grand Island,” Grand Island City Administrator Laura McAloon said.

Back on August 13, voters overwhelmingly supported implementing a Good Life District Economic Development Program for Grand Island. Of the nearly 7,500 ballots cast, more than 5,000 were for the creation of a Good Life District Economic Development Program.

The approval made way for a change in the way taxes are levied within the boundaries of the state-created Good Life District. Prior to October 1, the state collected a 5.5% sales tax. With the creation of the district, the state reduced its sales tax rate to 2.75%, enabling the city to impose a local tax of up to 2.75%. The City Council used a local occupation tax as the initial taxing tool, which enabled the city to retain all of the revenue locally, rather than a sales tax which could be retained in part by the state.

In total, the first month of sales within the boundaries of the Good Life District amounted to $9,265,891. Under the old tax structure, the state would have collected $509,624 in taxes with Grand Island receiving $185,317. Under the new structure featuring the occupation tax, the city collected total local taxes $445,226 while the state received $261,819.

“This new source of local funding will enable the City Council to partner with private developers in the growth of our local economy, especially in the development of the expanded Veterans Sports Complex for sports tournaments, new housing units and new businesses,” McAloon added.