Sales Tax Bill Vetoed

Nebraska Gov. Dave Heineman last week vetoed a bill that would give cities the option to hold a referendum on a sales tax increase.

Lawmakers supporting the bill held press conferences across the state to try to build support to override the veto.

The Legislature is expected to vote on the override attempt Wednesday.

It would require approval by at least 30 of the 49 senators in Nebraska’s single-chamber Legislature.

Legislative Bill 357 would allow cities to raise local sales taxes by a half-cent with voter approval. The current maximum rate is 1.5%; the measure would allow it to be raised to 2%.

In vetoing the bill, Heineman said it would hurt the state’s “tax-climate” ranking and make Nebraska less attractive to new business.

Omaha state Sen. Brad Ashford, who crafted the measure, said it would give cities resources they need to build new infrastructure or finance economic development projects.

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Nebraska
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