The Nebraska Supreme Court has rejected a challenge to the city of Omaha's 2.5 percent dining tax on all restaurants within city limits.
The appeal came from two Omaha restaurants and an owner who sued to stop the tax, saying it amounts to a sales tax that the city
does not have the authority to enact without a referendum. The
restaurants say that even as an occupation tax, it exceeds what
state law allows.
In April, a Douglas County judge dismissed the lawsuit,
upholding the tax. On Friday, the state's high court affirmed that
The tax, imposed on restaurant, bar and catering bills, went
into effect in October 2010.
For 2011, Omaha collected $23,796,387 from the restaurant tax.
For the first three months of 2012, it’s collected $5,131,902.
Experts say the first part of the year is always a little slow compared to receipts for the rest of the year.,