Wheel taxes on out-of-town commuters eliminated

Municipal wheel taxes can be levied only on city residents due to a bill approved by the Legislature March 9.

LB81, introduced by Bellevue Sen. Abbie Cornett, prohibits all cities from levying a motor vehicle fee on nonresidents. The bill phases out a new Omaha ordinance requiring nonresidents who commute to Omaha to pay a $50 fee, collected by their employer.

Nonresidents include those who use or store a vehicle no more than six months in a city or village and those who do not have a primary residence or own a place of business within city limits. Full-time college students attending school in a city other than the one in which their vehicle is registered also are considered nonresidents.

The bill phases out motor vehicle taxes for those living in an extraterritorial zoning jurisdiction of a city or village on Jan. 1, 2013.

LB81 was approved 37-4.