A half-cent increase in Omaha’s sales tax could generate $45 million for the city.
Nebraska lawmakers last week overrode Governor Dave Heineman’s veto of legislation allowing cities to raise their sales tax rate. Doing so would require supermajority approval from both the city council and voters.
Omaha’s current sales tax rate is 7 percent, with 1.5 percent of it local. Mayor Jim Suttle says there are no plans to put the sales tax initiative on the November general election ballot.
An amended version of Governor Dave Heineman’s tax cut plan is awaiting second-round debate in the Unicameral.
The tax cut plan passed the first round of debate earlier this week. Governor Dave Heineman originally called for $327 million dollars worth of tax cuts over three years. In addition to income taxes, the plan would’ve cut corporate income taxes and ended the state’s inheritance tax.
Senator Lavon Heidemann, chairman of the Legislature’s Appropriations Committee, says the amended plan is now $97.2 million. The inheritance tax remains part of state law.
Senator Brad Ashford introduced LB 1144 in the legislature.
He says the bill is part of the education priority package of bills that will be voted on by the legislature in the next few weeks. Senator Ashford says the bill supports and encourages the creation of career academies for Nebraska.
He says a career academy is a stand alone educational school that would provide courses and a pathway to employment for those students who do not seek a traditional college education.