Occupation tax limitation adopted

Senators passed a bill March 20 that prohibits cities from imposing a city occupation tax on any transaction subject to a state tax, such as purchases of alcohol, gas and tobacco.

LB474, introduced by Omaha Sen. Bob Krist, prevents a municipality from levying an occupation tax on an item that is subject to a state excise tax, which includes alcohol, tobacco, groceries and motor fuel.

Senators passed the bill on a 45-0 vote.