The Nebraska Legislature opens its 2024 session today, the last for two Panhandle lawmakers – 43rd District Senator Tom Brewer of Gordon and 47th District Senator Steve Erdman of Bayard.
Governor Jim Pillen won’t formally reveal his plan for the session until the State of the State Address in a couple weeks, but he has unveiled its centerpiece – what he calls a“bold and courageous” proposal to cut property taxes by raising the state sales tax.
The Nebraska Examiner says Pillen will propose increasing the sales tax rate by 2-cents to 7.5% and eliminating many existing exemptions, generating enough new revenue to cut property taxes by 40% to about $3-billion dollars per year. The plan also includes a tougher lid on local spending.
Pillen spokeswoman Laura Strimple told the Examiner yesterday the governor developed the plan because of the failure of other recent efforts to reduce local property taxes – letting “property taxes skyrocket with absolutely no relief in sight.”
Pillen’s plan would give Nebraska the highest state sales tax rate in the nation and push some municipalities to around 10-cents. Chadron, which has a total of 2-cents in local sales tax would be at 9.5%. .
The plan was endorsed yesterday by a “working group” of government and business officials appointed by Pillen, but the overall immediate reaction was mixed.
Revenue Committee Chair Senator Lou Ann Linehan, a key Pillen ally, said the plan deserves a discussion because “we have to do something about our over-reliance on property taxes in Nebraska. It’s really ridiculous.”