Chambers Calls For Repeal Of Sales Tax Law

By: The Associated Press Email
By: The Associated Press Email

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 two 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 two percent sales tax, Sidney, Alma and Waterloo.

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