Scaled Down Tax Package Drops Sales Tax Hike

One Day Remains in Legislative Session By Gordon HopkinsGovernor Jim Pillen remains devoted to his pledge of a 40 percent cut to property taxes in Nebraska. However, at this point, such an ambitious cut is no longer a part of the tax package currently being considered in the legislature.The current version of LB (Legislative Bill) 388 will see local property taxes reduced by 22 percent, rather than Pillen's original goal of 40 percent. That is according to Lee Will, Pillen’s budget director.Also no longer a part of LB 388 is a controversial one cent sales tax hike.A controversial element of the bill that remains is a new tax on digital advertising, which has been criticized by both liberals and conservatives. Senator Megan Hunt, District 8, and Senator Julie Slama, District 1, each said small businesses that depend on social media for advertising would suffer.Slama also suggested the tax could lead to a lawsuit, noting that the only other state that has such a tax, Maryland, is also facing 20 lawsuits.Despite this opposition, an amendment to eliminate the new tax failed.LB 388 advanced on a vote of 28-14. The legislature has now recessed for the week. Just one day of the current session remains on the calendar, Thursday, April 18, 2024. Governor Pillen has made tax reform, particularly property tax, the top priority of his administration and has threatened to recall the legislature to a special session.

Legislature Considers Funding for Inheritance Tax Cut

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