Nebraskans in Omaha and Grand Island saw Good Life Districts on their ballots within the last year, and voters in Gretna will see it soon. Interpreting the ballot language requires context. The language asks if the City is permitted to collect money and use it for a Good Life District, without explaining what a Good Life District is.

 

Without context, it is not clear what this money is for, where the District is, how it would benefit taxpayers, or even whether voters are voting for taxes to be raised or lowered. Voters who have been following the local news may know what the District is, where it will be, what will be built there, and that the State has approved it. But they may be left with the question: If it is already approved and plans have been made, what are voters being asked to decide?

 

The answer lies within the passage of two State laws which create a complex economic relationship between the state, the municipality, developers and business owners, and residents.

What is a Good Life District? It is an area being developed in ways that provide specific economic benefits for the state and local economy—and therefore, the State provides an incentive to bolster the district’s development. Specifically, the incentive is that Nebraska collects only half of its 5.5% sales tax on revenue generated within the district.

 

The Nebraska Legislature passed the Good Life Transformational Projects Act in 2023, to allow the creation of Good Life Districts. Good Life Districts are intended to keep Nebraska spending within the state; create jobs for Nebraskans; and bring in out-of-state visitors. To qualify, a developer must show that their project will bring in at least 20% of income from out-of-state visitors. They must generate a minimum amount of revenue and create a minimum number of new jobs (with the amount depending on the size of the municipality or locality in which the District is located). Districts are encouraged to include hotels, housing, restaurants, shopping (especially retailers who have not previously operated in Nebraska), and youth sports complexes. 

 

Why youth sports complexes? States with facilities that host regional sports tournaments for young people bring in athletes, families, friends, coaching staff, and others, all of whom need places to stay, eat, shop, and find entertainment. Currently, Nebraska does not have facilities to host such events. In establishing Good Life Districts, the Legislature hopes to “break in to” this market.

 

The first Good Life District, around which the legislation was created, was Nebraska Crossing in Gretna. The State approved an expansion plan submitted by developer Rod Yates, and began collecting only half of its 5.5% sales tax. However, the tax cut alone did not result in the expected growth. No one who was not already selling in the district could benefit from a sales tax reduction. In addition, Gretna did not have the tools or finances to direct the development or provide infrastructure.

 

As problems became apparent, the Legislature revised the 2023 Good Life District law in 2024 to allow municipalities to set up Good Life District Economic Development Programs. If the local government could collect the 2.75% tax that the state was not collecting, it could create an economic plan for the District. It could issue bonds and offer contracts to multiple new developers, and pay for its own administration and infrastructure costs.

 

But just because the State has given up half its sales tax, that does not mean that a municipality can automatically take the other half. Even if it could, it would be limited in how it could use the money. Both collecting a tax and using that tax in certain ways (for example, issuing bonds) require voter approval.

 

So the process, if successful, is something like this:

 

What happens if voters don’t approve? The extra 2.75% has no direction. It cannot be used to support developers not already operating in the district, and local jurisdictions have neither the funds nor sufficient tools to support development.

 

 

Under state law, only 5 Good Life Districts may exist at any one time, and each has 30 years to keep the tax benefit, so long as it is meeting economic benchmarks. So, what has been done so far with Good Life Districts?

 

 

Good Life Districts, intended to create economic growth and opportunities for Nebraskans, require intentional planning by developers, and careful evaluation by the State and the municipality. Voters may be involved in the process by deciding whether they wish their local governments to collect and dedicate resources to support these projects. These Districts are so new in Nebraska that it remains to be seen how well they will work. As citizens watching this concept developing, voters can critically examine how well the financial mechanisms work, if the Districts bring improvement to their communities, and if Nebraska sees the hoped-for growth from the investment.