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Property, income tax dispute threatens Nebraska tax package

LINCOLN, Neb. (AP) — An effort to unite Nebraska business and farm groups behind a sweeping tax plan is on shaky ground as both sides argue over which taxes should be cut.

The state's largest business groups are calling for income tax cuts, while some leading farm groups say lawmakers should continue their focus on lowering property taxes. Gov. Pete Ricketts is touting a plan that he says would help them both, but its fate remains uncertain.

Sen. Jim Smith of Papillion, chairman of the Revenue Committee, says he's still hopeful the groups will reach some agreement before the session ends, but he is concerned the dispute could derail the whole package.

Some senators say lawmakers shouldn't consider tax cuts when the state faces longer-term challenges with its prison system and mental health services.

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