Nebraska lawmakers still seeking agreement on property taxes

LINCOLN, Neb. (AP) — With their session nearly halfway over, Nebraska lawmakers are still trying to unite behind a plan to lower property taxes amid uncertainty over how to cover the cost.

Members of the tax-focused Revenue Committee are sorting through their options but signaled that they're open to a sales tax increase — an idea certain to face resistance from Nebraska businesses.

They also floated the idea of a corporate and personal income tax cut to help build support for package while eliminating sales tax exemptions on items such as candy, soft drinks and lawn-care services. If committee members agree to the idea, they'll have to sell it to the entire Legislature.

At the same time, lawmakers face the prospect of a new property tax-cutting statewide ballot measure that might appear on the 2020 general election ballot. A similar campaign was abruptly halted last year, but conservative activists are circulating new petitions to revive it.

Sen. Lou Ann Linehan, chairwoman of the Revenue Committee, said she's concerned that, if lawmakers don't act this year, the petition drive will succeed in putting the issue on the ballot and voters will pass it. That would force lawmakers to drastically cut spending to comply with the mandate.

Property taxes are levied by local governments, but the ballot measure would force the state to reimburse 35 percent of all the property taxes paid.

"If we don't do something, the petition drive will gather enough signatures and it'll pass," Linehan said. "We'll have a crisis."

Sen. Steve Erdman, of Bayard, who is active in the campaign, said supporters will only end the ballot drive if lawmakers pass a bill that makes a noticeable reduction in property taxes.

Erdman said he's still hopeful that members of the Revenue Committee will...