$1.8 Billion in School Property Tax Relief: Nebraska Governor Shifts Strategy to Expand Sales Tax, Not Limit Local Public Safety Spending

Nebraska Governor Jim Pillen Shifts Strategy on Property Tax Relief

New Plan to Cut $1.8 Billion in School Property Taxes

Nebraska Governor Jim Pillen has shifted his strategy on property tax relief, now backing a new plan that emerged from the special session. At a press conference with law enforcement officials and Pillen acknowledged that this updated approach, crafted by State Senator Lou Ann Linehan and her committee will not impose limits on local public safety spending. Instead, the plan outlined in Legislative Bill 9, seeks to cut about $1.8 billion in school property taxes by expanding the state sales tax to include over 70 new goods and services.

The revised plan still includes higher taxes on alcohol and some other items but differs from Pillen’s initial proposal by maintaining certain sales tax exemptions such as those for home and car repairs and legal services. It also proposes a 2% sales tax on new agricultural and manufacturing equipment. Additionally, the plan allocates state funds to cover expenses for county jails and natural resources districts while preserving the homestead exemption. This adjustment follows objections from local governments and law enforcement to Pillen’s earlier plan which had stricter spending caps, according to the report of Nebraska Examiner.

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(photo: Hertz)

50% Tax Hike Proposal Sparks Debate in Local Politics

Despite Pillen’s endorsement, the new plan has faced criticism from lawmakers like State Senator Danielle Conrad, who argues that the process is unjust and is against the proposed tax increases. Conrad supports alternative revenue options such as online gambling and recreational marijuana which are not included in this plan. Linehan defended the new proposal asserting that it offers a fairer tax distribution and addresses concerns raised during public hearings.

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