OMAHA, Neb. (AP) - More Omaha developments want to charge customers extra taxes for dining, drinking or staying overnight, according to city officials.
Five developments in the city have secured or are seeking “enhanced employment area” occupation taxes of 0.3 percent to 3 percent, the Omaha World-Herald reported.
City Councilman Rich Pahls said the proliferation of new taxes could cause confusion among customers and business owners, as well the city employees who have to sort it all out.
The occupation taxes often amount to pennies on a bill, but target different sets of customers depending on the development. The Blackstone District collects additional taxes on food and drinks, while other developments might cash in on hotel guests or apartment dwellers.
The occupation tax rates can also differ within a neighborhood. In the Capitol District, occupation tax rates vary north and south of Capitol Avenue, which can add to the difficulties customers face when trying to calculate the final bill ahead of time.
Developers receive most of the tax revenue, up to a maximum amount, as a way to recoup project costs.
A city committee will approve the tax if developers show a project invested at least $3 million into the community and created at least 30 jobs.
Developers often put the extra revenue toward projects that they might not otherwise have been able to pursue. The Blackstone District’s occupation tax is helping finance the restoration of the historic Blackstone Hotel.
Some city officials are concerned about Omaha employees devoting time to administering the taxes.
City Council member Aimee Melton said Omaha should be reimbursed for the staff time it takes to calculate and remit payments to the funds.
The city’s Finance Department isn’t overwhelmed by the task yet, according to officials. But the city is scrambling to figure out what fees it should charge as more developers apply for the tax.
City Treasurer Donna Waller said she’s glad the City Council is considering setting a fee. Waller said the department will hold that amount back from what it remits to each developer to cover administrative costs.
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Information from: Omaha World-Herald, http://www.omaha.com
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