Out-of-town commuters would not be charged municipal motor vehicle registration fees \u2014 also known as wheel taxes \u2014 under a bill advanced from general file Feb. 1.<\/p>\n
Lawmakers began general file debate this week with LB81, introduced by Bellevue Sen. Abbie Cornett, which would prohibit metropolitan class cities from levying a motor vehicle registration fee on nonresidents. Cities and villages also would be prohibited from levying a tax on nonresident motor vehicles.<\/p>\n
Discussion of the bill centered on an ordinance enacted by the city of Omaha in 2010. The ordinance requires an individual to pay a $50 fee if a vehicle is used more than 30 times a year to travel to a place of work within Omaha. The fee is collected by employers and \u2014 after subtracting 4 percent for processing \u2014 remitted to the city.<\/p>\n
As introduced, the bill would have limited municipal licenses or occupation taxes to businesses and individuals living within city limits. This provision was removed by an amendment offered by Cornett.<\/p>\n
The Cornett amendment also would phase out motor vehicle registration fees on Jan. 1, 2013, for those living in the extraterritorial zoning jurisdictions of cities and villages. Cornett said the amendment would give Omaha time to budget for the loss of the wheel tax revenue it has received since 2006 from those within its extraterritorial zoning jurisdiction, which is a 3-mile extension of Omaha’s city limits.<\/p>\n
Cornett called her amendment a workable compromise in which nonresident motor vehicle registration fees can be discontinued without straining the city of Omaha\u2019s budget.<\/p>\n
\u201cWe compromised by taking away half of the money [Omaha] budgeted for [nonresident wheel tax revenues] \u2026 and giving them a year to transition,\u201d Cornett said. \u201cWe are not allowing them past Jan. 1, 2013, to tax in their extraterritorial zoning jurisdiction.\u201d<\/p>\n
Omaha Sen. Brad Ashford said the Cornett amendment was needed to avoid putting Omaha\u2019s budget in jeopardy. While the bill as amended would reduce city revenues by $2.9 million, he said, it would be better than the $5.9 million the city would lose if the extraterritorial zoning jurisdiction taxing authority were revoked immediately.<\/p>\n
Omaha Sen. Beau McCoy spoke in support of LB81 but in opposition to Cornett\u2019s amendment, saying it could create winners and losers among nonresidents who are paying motor vehicle registration fees. If state tax policy is unfair for one segment of society, he said, it should not stand.<\/p>\n
Omaha Sen. Bob Krist also voiced concerns regarding the delayed action on extraterritorial zoning jurisdiction taxing. Sanitary and improvement districts (SIDs) in the metro area are included within the extraterritorial zoning jurisdiction and are taxed by local governing boards that are not elected by those taxpayers, he said.<\/p>\n
\u201cTaxation without representation has a name, and it\u2019s called an SID,\u201d Krist said.<\/p>\n
The Cornett amendment was adopted 28-11, and LB81 was advanced from general file 43-0.<\/p>\n","protected":false},"excerpt":{"rendered":"
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