Pub. 3 2021 Issue 1

Stay tuned for further updates and information impacting the profession via the Society’s “News Updates,” which are emailed periodically to your inbox. Joni Sundquist is president and executive director of the Nebraska Society of CPAs. You may contact her at (402) 476-8482 or joni@nescpa.org. Nebraska Public Accountancy Act, Section 1-162.01. Members of this task force will include: • Chairman: Ryan Burger, CPA, Society Chairman • Vice Cha i rman: Ma rcy Lut h, CPA, St ate Boa rd Vice Chairman • Dr. Thomas Purcell, CPA, State Board Chairman • Dana Weber, CPA, Society Board Member & West Nebraska Chapter President • Joni Sundquist, Society President • Dan Sweetwood, State Board Executive Director • Kristen VanWinkle, State Board Administrator 107th Legislature in Session During the Society Board meeting, lobbyists Walt Radcliffe and Korby Gilbertson of Radcliffe, Gilbertson &Brady led a discussion regarding the First Session of the 107th Legislature. Eight newly elected members, including three who served previously in the Legislature but left office due to term limits, were sworn in on January 6, the first day of the Legislature. Lawmakers are spending the 90-day session creating a two-year state budget and redrawing legislative and other district boundaries based on population changes ref lected in the 2020 U.S. Census. They also are considering legislation related to pandemic recovery, the construction of a new state prison, police oversight, and public school funding. COVID-19 restrictions are preventing face-to-face interaction between state senators and lobbyists in the Capitol building, and committee hearing schedules have been impacted. Your Society is keeping a close eye on Sen. Tom Briese’s LB422, which proposes to tax all services. The hearing on the bill before the Nebraska Legislature’s Revenue Committee occurred February 3. As part of the Coalition Against Service Taxes (CAST), which includes approximately 30 organizations, the Society signed on to a letter from the group expressing opposition to this legislation. As has been the case for many years, Society lobbyist Korby Gilbertson of Radcliffe, Gilbertson & Brady presented testimony and the coalition’s letter in opposition to the bill. Another bill you may want to keep your eye on, LB133, introduced by Sen. Steve Erdman, proposes to eliminate our current tax structure and switch to a f lat “consumption” tax on the purchase of goods and services. The Society also submitted a letter in conjunction with the Nebraska Board of Public Accountancy regarding our opposition to LB263, which would require occupational boards to issue certain credentials based on credentials or work experience in another jurisdiction. As presented, we believe LB263 could create confusion regarding State Board requirements for CPAs applying for licensure in Nebraska. We also have concerns that the bill could create a “loophole,” allowing individuals tomaneuver requirements in other jurisdictions with the goal of bypassing Nebraska requirements. In addition to the letter, the Society joined six other organizations in testifying against the legislation; lobbyist Kent Rogert of Jensen Rogert Associates delivered testimony on behalf of the coalition. From what we understand, Sen. Dave Murman plans to draft an amendment that would make the bill only apply to professions that do not have reciprocity in statute or rules and regulations. Yet another piece of legislation the Society is watching is LB369, concerning the Auditor of Public Accounts’ access to working papers and audit files. The major change to Nebraska Revised Statute 84-305 appears to be the addition of late fees and penalties for delays in providing requested documents to the Auditor of Public Accounts. Society leadership is keeping an eye on LB74, too. Introduced by Sen. Suzanne Geist, LB74 would sunset the Nebraska Advantage Microenterprise Tax Credit Act in 2020 and move the $2 million saved from the elimination of the Act to the Nebraska Department of Economic Development to increase the appropriation for the Business Innovation Act. While a number of CPA firms take advantage of the credit on behalf of their clients, the Society has learned that the Microenterprise Tax Credit is not being utilized to its full potential and is not taxpayer friendly. The purpose of the Business Innovation Act is to encourage and support the transfer of Nebraska-based technology and innovation in rural and urban areas of Nebraska in order to create high growth, high technological companies, small businesses, and microenterprises and to enhance creation of wealth and quality jobs. Speaking of cumbersome tax credits, we’ve been hearing from many of you about the Nebraska Property Tax Incentive Act Credit. We understand that the process to claim the credit is very cumbersome and that in many cases the cost of complying with the tax credit requirements eats up the amount of the credit. The Society will continue working with the Nebraska Legislature and Nebraska Department of Revenue to help find solutions to your challenges and answers to your questions. You will find more information at https://revenue.nebraska.gov/about/ nebraska-property-tax-incentive-act-credit. Stay tuned for further updates and information impacting the profession via the Society’s “News Updates,” which are emailed periodically to your inbox. As always, please feel free to reach out with your concerns. We’ll always do our best to track down the answers to your questions. The Nebraska Society of CPAs Executive Committee will meet March 19 and the next Society Board of Directors meeting will take place May 13 via Zoom. Please feel free to contact me or any member of the Society Board with suggestions or comments prior to the next meeting. t 7 nebraska society of cpas W W W . N E S C P A . O R G