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Senators question Nebraska sales and property tax proposal

LINCOLN, Neb. (AP) — Lawmakers are questioning a proposal that would raise Nebraska's state sales tax and steer the extra revenue into tax credits for low-income residents and property owners.

The bill drew support from farmers on Wednesday during a Revenue Committee hearing but criticism from conservative groups and some senators who say it won't address the underlying problem.

Sen. Tom Briese of Albion says he introduced the measure in response to continued pressure from farm and ranch land owners whose property values have soared while commodity prices have slumped.

The bill would increase Nebraska's sales tax rate from 5.5 percent to 6.5 percent. The revenue would be used to increase the state's earned income tax credit for low-income residents. It also would provide a tax credit for all property owners.

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