Fees that some lawmakers say amount to an unfair tax on a tax may soon be illegal in Nebraska, a move that would largely benefit Omaha residents but that could also apply statewide.

The Legislature on Thursday narrowly gave first-round approval to a bill (LB952) that would remove a sales tax that can now be imposed on fees to finance replacement of water, sewer and natural gas lines.

The federal government is requiring that some water and sewer lines be replaced in the city, which could cost about $2.7 billion.

Fiscal analysts estimate that deleting the tax will reduce state sales-tax revenue by more than $25 million over the next four years.

Omaha Mayor Jim Suttle has said the bill might force the city to raise property taxes.