Legislature overrides county sales tax veto

Lawmakers voted April 30 to override the governor’s veto of a bill that allows a county to impose a sales tax to help pay a federal judgment against it.

LB472, introduced by Adams Sen. Myron Dorn, authorizes a county board to adopt a resolution to impose a sales and use tax of 0.5 percent on transactions within the county to pay a qualified judgment, which the bill defines as a judgment rendered against a county by a federal court for a violation of federal law.

Dorn has said the proposal is intended to help the residents of Gage County. In 2016, a federal judge awarded more than $28 million in damages to the six men and women wrongfully convicted of the rape and homicide of a Beatrice woman in 1985. The individuals, commonly known as the “Beatrice Six,” had sued Gage County in federal court after DNA evidence exonerated them.

Gov. Pete Ricketts returned LB472 to the Legislature without his signature April 24 after lawmakers passed it April 18 on a vote of 43-6.

In his veto message, the governor called the events leading to the introduction of LB472 “tragic,” but said the Legislature should not authorize political subdivisions to impose new taxes on Nebraskans without a vote of the people.

Dorn offered a motion to override the veto, saying Gage County’s voters did not have a say when the county board voted last year to raise its property tax levy to pay the judgment, which at the time was the only way it could do so.

Dorn said imposing the sales tax will reduce the time needed to pay the judgment from more than eight years to as little as six years, providing some property tax relief to Gage County property owners.

Sen. Tom Briese of Albion supported Dorn’s motion. He said it more fairly spreads the judgment’s cost, which now rests disproportionately on agricultural landowners already suffering from high property taxes.

North Platte Sen. Mike Groene also supported the motion, despite finding himself “between a rock and a hard place,” he said. Although LB472 is the fastest, most financially sound way of paying the judgment against Gage County, Groene said, it is an exception to his principle that the people should be allowed to vote on any proposed sales tax increase.

Taking the decision to a vote would impose election costs on the county and delay implementation of the sales tax if voters approve it, he said.

Sen. Ernie Chambers of Omaha also supported the motion, saying LB472 addresses a unique situation that will not happen again. Not every decision is put to a vote of the people in a republican form of government, he said.

“The Supreme Court itself has said [that] some principles are so important [that] they should not be left to the vicissitudes of elections or opinion polls,” Chambers said. “In other words, the governmental entity is to take the action and do the right thing.”

Bayard Sen. Steve Erdman opposed the motion. Although he voted to pass LB472 because it “was the right thing to do,” Erdman said, he opposed the veto override because Dorn, as an Appropriations Committee member, supports an effort by the committee to provide less property tax relief than proposed by the governor.

Erdman said the larger increase would have helped Gage County property taxpayers.

“You can’t be on both sides of the same issue,” he said.

Also in opposition was Sen. Mike Hilgers of Lincoln, saying LB472 is based on the premise that Gage County residents would not vote for the sales tax increase if given the opportunity. He said the bill sets a precedent of removing the vote from the people if the Legislature believes that voters would not do the right thing.

Lawmakers voted 41-8 to override the governor’s veto. Thirty votes were needed.