A committee of community members, led by new Callaway Economic Development Director Amber Harrison, met on Friday, Sept. 23, to discuss the utilization of community LB840 funds. Also at the forefront of the discussion was the challenge of educating the public on what exactly LB840 is - and most importantly, what it is not.

To be clear, LB840 is a sales tax within the community. However, it is NOT a new sales tax. Callaway Chamber of Commerce president Ken Pitkin explained that the community voted to adopt the LB840 sales tax eight years ago, with the caveat that it would come back to the voters after 10 years. That is why the measure to adopt the tax will appear on Callaway ballots in November. It is simply to allow the tax already in place to continue.

“We want to make sure we are getting money to the community for improving the quality of life, helping businesses and building new businesses,” said Harrison.

Ashley Gerlach, Business Development Consultant with the Nebraska Department of Economic Development, was also present at the meeting and gave an overview of what the LB840 tax is. “It is a local option sales tax that communities can use for economic development purposes. It is locally controlled dollars. There are state statutes to guide what communities can and can’t do with those dollars, and in communities the size of Callaway all of the businesses qualify for the use of those funds,” Gerlach explained.

The community votes on two separate items on the ballot: first to adopt the sales tax, and second to approve the plan for the use of the money collected. It is vital that voters check yes to both measures - one is completely a moot point without the other.

LB840 funds can be used for marketing, tourism, helping establish and expand businesses, housing and childcare. For a village like Callaway it is an important tool for helping support existing businesses, as well as encourage the development of new businesses in the community.

Both measures will appear on the Nov. 8 ballot for Callaway voters. One pertains to the LB840 plan, while the other approves the 1% sales tax.

Again, this is NOT a new tax to Callaway residents. It is approval of continuing the existing tax, which generates funds not only from community members but from anyone who purchases anything in the village.

Those coming to Callaway for ball games who may stop and get fuel, folks coming to town for doctor appointments who may pick up a few items from the grocery or hardware store - the tax is collected on all sales within the village.

The LB840 tax generates about $40,000 per year, or $400,000 over the 10-year cycle of the plan. Since the tax was first adopted in Callaway several businesses have benefited from LB840, including Henry Moore who used funds to help establish Henry’s Bar.

We will continue our look at the impacts LB840 funds have had on the community of Callaway, as well as other pertinent information about the plan and the tax, in next week’s Courier.