Nebraska lawmakers are eliminating a new tax on phone sales that Lincoln levied last year to help lower its deficit.
The city in 2010 began collecting an additional 6% tax on the sale of phones and phone services that officials said would generate $600,000 annually. The new money was to be used for a general fund shortfall.
But state Sen. Deb Fischer opposed the tax, and introduced a bill that would prohibit placing occupation taxes on equipment.
Fischer called it a sales-tax increase and said Nebraska already has some of the highest taxes on phone services in the nation, according to a local report.