PILLEN TAX PLAN LIMPS FORWARD AFTER SPONSOR AGREES TO REMOVE SALES TAX INCREASE

LINCOLN- On Tuesday, Gov. Pillen's property tax reduction plan limped forward in the Legislature after Sen. Lou Ann Linehan, its sponsor, agreed to strip out a proposed 1-cent increase in state sales tax. The bill advanced from its first round of debate on a 28-12 vote. Sen. Linehan acknowledged that the proposal would not pass if she had decided to keep the sales tax increase in the proposal.

The proposed increase was met with fiery opposition from conservative groups, business organizations, and several Democrats in the Legislature. LB388 is designed to shift $650 million off local property taxes and onto new and increased sales taces, resulting in a 30% reduction in property taxes.

Gov. Pillen's policy research director, Kenny Zoeller, said that his boss has a goal of providing more than $600 million in property tax relief, but that it's up to the Legislature to get there. "However we get there, he's open to," said Zoeller of Pillen's preference. Pillen later told the press that is "open to any avenues of funding this historic property tax cut."

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