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Senators: Property, income tax reforms should be linked

LINCOLN, Neb. (AP) — Some of Nebraska's largest agricultural groups will push again for lower property taxes in next year's legislative session, but key senators say any proposal should be coupled with income tax cuts.

Sen. Jim Smith of Papillion says combining the two could make the package easier to pass when the Legislature reconvenes in January because a larger coalition of senators would support it. Gov. Pete Ricketts is considering both income and property tax reductions.

Lawmakers have spent the last several years focusing on property taxes to address complaints from farming and ranching groups, but Smith and others hope to expand on the income tax cuts approved under former Gov. Dave Heineman.

Passing a major package could be difficult because of a projected $234 million state budget shortfall.

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