Omaha Public Radio News
1:01 pm
Mon October 4, 2010

Lawmaker looks at changes to wheel tax law

Omaha, NE – A Bellevue lawmaker wants to clarify state law regarding wheel taxes.

State Senator Abbie Cornett has drafted legislation that continues cities' ability to impose wheel taxes, so long as the tax is only imposed within city boundaries. The legislation is in response to Omaha's new $50 dollar per-year tax on people who live outside Omaha but work in the city at least 30 days a year.

Cornett says she doesn't want to take away the ability to impose a wheel tax. "If Papillion decided to impose a wheel tax and Bellevue decided to impose a wheel tax across their boundaries also, a person could live in Papillion, work in Bellevue, their spouse could work in Omaha, and how many wheel taxes would they be paying and who would they be paying them to?," Cornett says.

Cornett says if the wheel tax law isn't clarified, it'll create a "knotted" tax system and place an undue burden on employers.

The Legislature's Revenue Committee is also looking at rules relating to occupation taxes.