Nebraska Committee Preparing to Review Sales Tax Law

By: Associated Press
By: Associated Press

State Sen. Ernie Chambers is urging lawmakers to repeal a Nebraska sales tax bill that was passed last year for cities.

The Omaha senator told the Legislature's Revenue Committee Wednesday that the new law disproportionately hurts the poor, who pay a greater share of their income in sales taxes.

The law, which was approved last year, allows Nebraska cities to increase their local sales taxes to as much as 2 cents per dollar, if they receive voter approval. The state already levies a 5.5-cent sales tax.

Gov. Dave Heineman opposed the measure last year, but lawmakers overrode his veto.

Chambers called the law a "monstrosity."

Three local governments are set to enact a 2 percent sales tax: Sidney, Alma and Waterloo.

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