Attempt To Repeal Nebraska Sales Tax Law Rejected

Lawmakers have rejected an attempt to repeal a new Nebraska law that lets cities raise their local option sales tax rates, as long as they secure voter approval.

The law gives cities the power to ask voters for an increase to as high as 2 percent, up from the current 1.5 percent lid imposed by the state. Lawmakers voted Monday not to reconsider a measure filed by Sen. Ernie Chambers, of Omaha.

Supporters of the law argue that any increase would require majority support from local residents, and cities would have to designate a specific use for the money. Chambers has argued sales taxes disproportionately affect the poor, who pay a larger share of their income when buying goods and services.

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