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LB270 would let municipal designees notify auditor of suspected sales‑tax irregularities, municipalities say
Summary
Sen. Victor Rountree’s LB270 would permit municipal designees who review confidential local sales tax returns at the Department of Revenue to notify the Auditor of Public Accounts if they find suspected irregularities, enabling state audits of potential mis‑remittance to municipalities.
Senator Victor Rountree introduced LB270 to the Revenue Committee, proposing that a municipality’s certified designee who reviews confidential local option sales tax returns at the Department of Revenue may notify the State Auditor of suspected irregularities so the auditor can conduct a follow‑up audit.
Proponents said the change fills a statutory gap that leaves municipal designees without a route to address suspected discrepancies. Under current law the designee may examine returns only on Department of Revenue premises and is prohibited from making records or disclosing information; LB270 would create a limited disclosure exception to allow notification to the Auditor of Public Accounts and authorize the auditor to examine suspected irregularities under existing audit authority.
Senator Victor Rountree (District 3), sponsor of LB270, told the committee municipalities need a practical path to address suspected mis‑remittance so local revenue streams are correct. Michelle Andahl, director of community development for the city of Papillion, said current confidentiality rules leave municipal designees unable to escalate concerns; she and other local leaders testified the bill complements LB269 (an address‑based sales tax remittance proposal heard earlier) and supports municipal revenue certainty when state incentive programs affect where sales tax is remitted.
Christy Abraham of the League of Nebraska Municipalities said the bill and LB269 “fit together” and reported that lawmakers and city officials worked with the State Auditor’s office drafting the language. Jeff Schreier, representing State Auditor Mike Foley’s office, testified the auditor’s office supports the bill and has staff experienced with sales‑tax audits, and said the proposal fits existing constitutional and statutory audit authority.
Committee members asked clarifying questions about confidentiality safeguards and audit scope; witnesses said the language is narrow, limited to suspected irregularities identified during permitted review, and directed to the auditor for appropriate follow‑up rather than broad public disclosure.
The committee heard municipal and auditor supporters in favor of LB270 and took no vote during the hearing. The sponsor asked that the bill be advanced to general file following consideration of testimony.
