Nebraska Business Coalition Fights Against Property Tax Reduction Plan: Opposes Proposal to Apply Sales Tax to Exempt Items

As the Nebraska Legislature prepares for its final vote on Gov. Jim Pillen’s property tax reduction plan, a coalition of primarily business groups has strongly opposed the proposal. The group, comprised of grocers, broadcasters, convenience stores and others, has written a letter to the governor expressing their concerns.

The bill in question would require sales tax to be applied to items that are currently exempt, such as pop, candy and veterinary services for pets. The revenue generated from these taxes would be used to support schools in an effort to reduce property taxes by approximately 22 percent, according to Pillen’s budget office. However, the coalition believes that this plan will result in significant cost increases for businesses and will also impact the average Nebraska family by increasing their expenses.

Last week, senators voted 28-14 to move the bill forward. However, if opponents choose to filibuster, a total of 33 votes would be needed to overcome it. The fate of the bill remains uncertain as it moves towards its final vote.