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Governor Heineman Vetos Sale Tax Bill
LINCOLN, Neb. (AP) - Governor Dave Heineman has vetoed a bill
that would let Nebraska cities increase local sales taxes with
voter approval.
The Republican governor on Wednesday rejected the measure as
promised, and said he disagreed with arguments that it was strictly
about local control.
The bill would increase the ceiling for local sales taxes to 2
percent, up from the current 1.5 percent lid. Increases under LB357
would require voter approval. Money not earmarked for tax
reductions or other projects would have to go toward public
infrastructure and economic development.
But Heineman says cities could easily play a "shell game." He
says local officials could funnel the new money into expenses
covered by existing tax dollars, which would free up that money to
spend as they please.
© Associated Press
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