Governor’s Sales Tax Proposal Raises Ire of Some But Others Are Cautiously Optimistic

Governor Jim Pillen has made reducing Nebraska property taxes a top priority of his administration.This week he showed his willingness to raise other taxes to pay for property tax cuts when he suggested increasing sales tax by as much as two cents.The proposal has a number of critics, such as Open Sky Policy Institute, a public policy think tank and advocacy organization based in Nebraska.“Reducing property taxes through an increase in the sales tax is simply a shift that will make Nebraska's tax code even more regressive,” Open Sky Executive Director Dr. Rebecca Firestone posted on social media. “That's a 36 percent increase in taxes for all consumers in the state, for the purpose of reducing taxes just for property owners.”FJN asked for a reaction from local politicians, who were more optimistic but also acknowledged they had not had sufficient time to examine all of the ramifications of such a change.Nebraska Senator Tom Brandt (District 32) told FJN, “We're encouraged anytime you have a governor that's willing to take on and do a meaningful change to the property tax problem in the state of Nebraska. So, I mean, you're looking at increasing a sales tax to adjust the property tax in the right direction. Okay. People talk about tax shifts. I don't see it so much as a tax shift. You can't call this a tax shift, when what's been happening with property tax truly is a tax shift. So, this gets it back in balance. It's an attempt.”“This is the first time I've seen it,” said the senator. “We still don't know who's going to carry the bill, and have not seen the actual bill itself.”Jefferson County Commissioner Mark Schoenrock said, “The Nebraska Association of County Officials, along with many other associations, groups, elected officials and Governor Pillen and his staff, as part of an integrated working group, have been discussing the taxation issue for these past weeks. Although the primary focus has been property taxes which provide the revenue needed for essential services provided by our schools, county government, and many other entities that serve Nebraska citizens, this group has been working to better balance overall the three legged stool of property taxes, income taxes, and sales tax. I believe that local control of these functions provided by elected boards is vital to the equation. Local boards know their local area and needs and are best equipped to provide those services in the most cost efficient and prudent manner possible. I believe that through the efforts of this working group, and many other dedicated Nebraskans, that we will find the best solutions to provide the revenue to best serve our fellow citizens in a cost efficient and prudent manner.”Jefferson County Commissioner Gale Pohlmann pointed out, “There are two ways to increase sales tax revenue. First we could do away with some of the items and services which are exempt from sales taxes, and of course we can raise the rate to capture more revenue from what is presently taxed.“Since the county does not receive any sales tax revenue, the only way our citizens would gain is through higher property tax credits on our property tax bill and/or more state aid to schools to reduce their property tax request.”Pohlman added, “I think it is good that the legislature is looking at this and hopefully it will be given discussion time and consideration. My thoughts are that they will come up with a compromise of a slight raise to the tax rate along with removing some of the present tax exemptions presently out there.”

City Adds New Positions to Staff

Maureen Diane Veatch Gobel

Related Articles

P&Z Workshop Cancelled for Thursday

Jefferson County Commissioner Mark Schoenrock Announces Candidacy for Nebraska Legislature

ID Theft Investigation Leads to Immigration Raid in Omaha

Dr. Shumard on Leave