Business groups, local governments say they support Pillen tax shift proposal if changes made

State Sen. Lou Ann Linehan of Elkhorn takes questions about tax shift and spending cap proposals designed to reduce property taxes by 40%. (Paul Hammel/Nebraska Examiner)

LINCOLN — Four straight days of gathering public input on Gov. Jim Pillen’s plan to use higher and broader sales taxes to lower property taxes made it clear there’s more work to be done.

On Friday, several key business and local government entities said they agreed high property taxes were a problem, but their support for the governor’s plan came with conditions.

The Nebraska Chamber of Commerce and Industry — a key player in any major tax reform — testified that it supported the concept of a harder cap on local government spending and “front loading” the property tax break that now requires claiming it on an income tax form.

Opposed tax hike, shift

But Alex Reuss, a representative of the chamber, said its members can support Pillen’s plan for a $1 billion reduction in property taxes only if it doesn’t involve a sales tax increase or a tax shift from property to sales.

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