The Revenue Committee voted Wednesday to send the measure, LB357, to the floor.
The bill by Sen. Brad Ashford of Omaha has support from city officials in Omaha, Lincoln, Kearney and various towns. It requires cities to explain how they would use the extra revenue if they propose a tax increase.
Current state law allows cities to set the rate as high as 1.5 percent. The state sales tax is 5.5 percent.
The bill must survive three votes of the full legislature before it proceeds to Gov. Dave Heineman. Heineman has said he opposes any tax increases.
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