State Senator John Stinner says he will be supporting a new plan to eliminate certain sales tax exemptions to provide additional tax relief for landowners.
An amendment to LB 183 would end about 20 exemptions for non-business related services, and add sales taxes to bottled water, soda, candy and ice, to bolster the state’s property tax credit relief fund by approximately $100 million a year.
Stinner tells KNEB News the proposal is an incremental approach that’s more palatable than the Revenue Committee’s plan debated a few weeks ago. “The sales tax exemptions are part of that original package (from the Revenue Committee), and I could not support the (overall) sales tax increase,” says Stinner, “But in terms of looking at exemptions, if, indeed we’re going to update our tax code and take a look at categories, that would be one way of getting property taxes back in line with all the other taxes.”
The amendment by Senator Tom Briese does not address the state’s formula for providing aid to public schools.
Stinner says he doesn’t know if Briese’s plan has broad support, but believes it would be much closer to being able to withstand a filibuster, even as the Governor has announced his opposition to the proposal.
The Gering lawmaker says the additional funding, along with the increase in the budget, would bring the property tax credit relief fund to about $375 million.