A bill heard by the Revenue Committee Feb. 27 would remove cities\u2019 authority to increase their sales tax by one-half cent.<\/p>\n
The Legislature voted in 2012 to allow local option sales taxes to be levied at 1.75 percent and 2 percent with 70 percent approval of the members of a municipality\u2019s governing body. The proposal then would be submitted to voters for approval.<\/p>\n
LB266, introduced by Omaha Sen. Ernie Chambers, would remove the authority, maintaining the current sales tax rates. He said the tax disproportionately affects the poor.<\/p>\n
\u201cThe poor don\u2019t have a lot of discretionary income,\u201d Chambers said. \u201cWe spend everything we get and then we\u2019re in debt. When it comes to the poor, the sales tax hits them the hardest.\u201d<\/p>\n
Matthew Litt, state deputy director for Americans For Prosperity, supported the bill, saying individual families should be the state\u2019s top priority.<\/p>\n
\u201cThis bill protects Nebraskans\u2019 hard-earned dollars in these tough economic times,\u201d he said. \u201cThe needs of Nebraska families outweigh the interests of anyone else.\u201d<\/p>\n
Ken Bunger, representing the village of Waterloo, opposed the bill. He said the citizens of Waterloo passed a local option sales tax increase to fund street and roads projects.<\/p>\n
\u201cThe resources of a village or small community are limited,\u201d Bunger said. \u201cThe ability to have a larger local option sales tax is a big deal.\u201d<\/p>\n
The committee took no immediate action on the bill.<\/p>\n","protected":false},"excerpt":{"rendered":"
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