Nebraska’s legislative package aimed at providing property tax relief to citizens was presented on the Unicameral floor for its initial discussion on Wednesday. Governor Jim Pillen, who prioritized this tax package, referred to it as “historic” and “transformational.” However, some state senators have compared Nebraska’s tax system to an uneven stool, placing too much weight on property owners.
On the other hand, organizations such as the Nebraska Chamber of Commerce have opposed shifting this burden to consumers through sales tax hikes. Business owners like Sarah Linden, CEO of Grateful Green, are concerned about specific sales tax increases included in the proposal. For instance, a 100% tax on CBD and hemp products may discourage customers and result in lower sales tax revenue as businesses shut down. Linden believes these measures are punitive and will harm lower to middle-income consumers who use these products for medical reasons.
Meanwhile, at Brewsky’s Food and Spirits, owner Brian Kitten emphasized the importance of games of skill machines in generating revenue for his business, particularly during the pandemic. However, with proposed taxes on these games set at 20%, Kitten fears losing a valuable source of income. He described the potential impact as a “downward spiral” for his business.
As the debate continues on the floor, the specifics of the bill may undergo changes, with senators expected to spend several more days tweaking the language. The overall goal of this legislative package is to ease property taxes’ burden on Nebraskans; however, proposed measures have drawn mixed reactions from various stakeholders in the state.
