The Nebraska Legislature returns from a 4-day weekend today, kicking off a week when the Revenue Committee is scheduled to begin crafting property tax proposals during executive sessions with Gov Jim Pillen’s proposed 40% cut front-and-center.
Pillen’s plan to increase the state sales tax rate, eliminate many existing sales tax exemptions, put a “hard cap” on local government spending, and “claw back” unspent funds in several stage agencies has drawn a mixed response that’s continuing.
Two public opinion polls taken in recent weeks had conflicting results, with one showing support and the other opposition to the concept that’s praised by some as providing true property tax relief and criticized by some as a “tax hike” and an unacceptable tax shift.
Pillen last week touted a poll taken for NACO, the Nebraska Association of County Officials, that showed 65% support for “increasing the state sales tax rate by 1% in order to allow local governments to continue to provide important services?”
Pillen said it “clearly indicates that this is the strongest priority for Nebraskans, who recognize we must reform current policies, if we are to be competitive.”
On the other hand, a poll conducted for the Holland Children’s Institute found 45% opposed to cutting “property taxes by raising state sales taxes from 5.5% to 6.5%” and only 43% in favor.
Holland executive director Hadley Richters said the poll responses are different because they asked different questions, adding that “You’re bound to get different answers if you word the questions differently.”
. Both polls have around a 4% margin of error and both indicated that respondents had more faith in local governments, including county boards, to make budgeting decisions than the state.
The two polls follow one released in January by Americans for Prosperity Nebraska that showed 70% of those responding opposed raising sales taxes to decrease property taxes.