Nebraska Legislature debates increase in sales tax for property tax relief [Video]

LINCOLN, Neb. (WOWT) – A debate on property tax relief started in the Nebraska Legislature on Wednesday, and an increase in the sales tax is part of the discussion.

LB388, proposed by State Sen. Lou Ann Linehan of Elkhorn, seeks to use sales tax funds to supplement property tax relief. The bill seeks to cap spending by cities and counties, but it includes exceptions for spending on police, fire, and correctional services. It would also raise sales taxes in Nebraska by up to one cent.

“The idea that a penny tax hurts others — show me the numbers,” she said during Wednesday’s session. “Everyone saying this will hurt people — show me the numbers.”

Linehan said that during a meeting held a few years ago, “we came up with this crazy idea that we will use an income tax credit for property taxes paid. Everyone since then has said, ‘Why did you do that?’ Because that is the only way …