Unicameral Update: A Very TAXING Summer!
June 14, 2024
It doesn't seem to matter who I talk to, taxes are on the top of everyone's mind. Whether it's the EPIC Consumption tax proposal or Governor Pillen's yet to be determined property tax relief/tax shift plan, the only consensus is that there isn't a plan that will make everyone happy.
The EPIC proponents have just over two weeks left to gather the necessary signatures to place their Constitutional Amendments on the November ballot. I feel relatively certain that they will fail but I'm keeping my fingers crossed. Our coalition, No New Taxes Nebraska, has continued to work to educate Nebraskans across the state about the dangers of the EPIC plan. However, even if it fails to get on the ballot, the idea will likely be reintroduced in the Legislature. Thus, we will continue to give you information to share about just how dangerous eliminating an entire tax structure would be without first knowing both the impact and the implementation thereof.
As if EPIC wasn't enough to worry about, Governor Pillen continues to travel the state and push for his 40% property tax cut package. The problem with the package is that no one, including the Governor, knows what is in the package. Pillen has begun to meet with an undisclosed group of senators. Our early intel is that the Governor is now considering a much broader sales tax base with the potential of lowering the state sales tax rate (a major shift from his contention earlier this year that no one pays attention to sales taxes, and we could easily raise the rate by 2 cents - 36%). The Nebraska Examiner reported this week that Governor Pillen announced that all sales tax exemptions are on the table. I highly recommend reading this article as Zach Wendling did one heck of a job researching and reporting on the subject. There's also a complete listing of current sales tax exemptions. Here's a link: https://nebraskaexaminer.com/2024/06/10/everybodys-got-to-play-breaking-down-nebraskas-more-than-100-sales-tax-exemptions/ (I'm keeping this one bookmarked on my computer.)
It seems likely that we will be in a Special Session in August. Historically speaking, without a clear plan and the necessary votes to get something passed, it is virtually impossible to get anything done. A special session also opens the door to any other legislation that could fit under the subject matter of the Call. The possibilities are endless if the Call includes both revenue and funding components. So, we wait and see if something materializes in the coming weeks.
Have a great weekend!
Korby M. Gilbertson
Radcliffe Gilbertson & Brady
625 S. 14th Street, Suite 100
Lincoln, NE 68508
402.476.7272