PROPERTY TAX RELIEF BILL ADVANCED TO LOWER SCHOOL TAX BY HALF OR MORE

LINCOLN- A property tax relief package advanced by a legislative committee is projected to lower local school taxes by a half or more by raising the state sales tax by up to 1 cent and eliminating a handful of sales tax exemptions. The Legislature’s Revenue Committee advanced LB388 on a 7-0 vote with one member absent. The full Legislature might debate the bill as early as Tuesday of next week.

The proposal falls short of Gov. Jim Pillen’s goal of finding an extra $1 billion in new revenue to defray property tax bills, instead delivering about $650 million. “I don’t think the governor will be done unless he gets 40% relief,” said State Sen. Lou Ann Linehan, who chairs the Revenue Committee. “But it won’t happen this year.” In a statement, Pillen thanked the committee for their work on property tax relief.

State sales taxes are now 5.5 cents. A raise to 6.5 cents would place Nebraska with the ninth highest state sales tax rate in the country, and match Kansas as highest in the region. “A sales tax increase means Nebraskans will be paying more for the goods and services that their families need, adding to the cost of cars, clothes and school supplies,” said Rebecca Firestone, OpenSky’s director.

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