Nebraska collected $297 million more in tax revenue in May than expected, according to figures released Tuesday.
The Nebraska Department of Revenue reported net tax receipts $720 million, which is more than 70% higher than the official forecast of $423 million.
The increase was driven by corporate income tax collections that were 375% above the certified state forecast and individual income tax collections that were 97% above the forecast. Net sales-and-use and miscellaneous tax receipts were 14.9% and 30.9% higher, respectively.
Net tax collections have also been higher than expected for the current fiscal year, which ends this month. The state has collected $5.378 billion during the current fiscal year, which is nearly 19% higher than the certified forecast of $4.525 billion.
Nebraska Department of Revenue spokeswoman Lydia Brasch said the surge in revenue appears to be driven by a recovering state economy.
Brasch pointed to the state’s low unemployment rate, a strong agricultural industry and businesses that have returned to full operation since pandemic restrictions were lifted. The state’s housing market is also strong, as it is in most of the country.
“We weathered the pandemic extremely well,” Brasch said.
Other states have seen similar surges in revenue as life returns to normal, and they’re pumping more money into schools, social programs and infrastructure. Many states are also socking away billions of dollars.
The comparisons are based on a state revenue forecast that was certified in August 2020.