In 1991 the Nebraska Legislature passed into law the Local Option Municipal Economic Development Act, commonly known as LB 840. The law permits Nebraska cities to commit local sales tax proceeds for the benefit of private businesses. The goal of the plan was to provide jobs and capital investment in the city by encouraging and assisting local businesses with expansion, and to recruit new businesses.
Cozad held a special election in May of 1999 to adopt an economic development plan whereby they would collect a ½ cent sales tax to fund development in the city of Cozad. The monies are collected by the city and administered by the CDC Board of Directors. A revolving fund provides loans, loan guarantees or equity investments to any eligible business prospect or project.
Cozad has progressed significantly through the past eleven years with the tax money received through LB 840. CDC has assisted in a variety of projects and approximately 50 new and existing businesses continue to thrive and grow because of the tax dollars collected through the sales tax plan.
