Governor Jim Pillen’s much-amended plan to raise sales taxes to decrease local property taxes went down in flames Thursday, the final day of the 2024 state legislative session. It was a stunning defeat for the idea of raising some taxes to reduce others, and it almost assuredly guarantees that state lawmakers will be back this summer in a special session on taxes.
After all, Pillen has said that he will keep senators in session until Christmas, if need be, to reach his goal of reducing local property taxes by 40%. State Sen. Julie Slama of Dunbar led a final-round filibuster of the governor’s plan, Legislative Bill 388, saying it was a tax increase that Nebraskans overwhelmingly opposed and contained a likely unconstitutional clause to tax digital ads.
Only one other state, Maryland, has attempted to tax advertising placed on social media giants like Facebook and Google, and that state is fighting multiple lawsuits and being forced to pay back what it’s collected in taxes plus interest.
Slama argued that the only Nebraskans who would see a tax reduction under LB 388 were those who aren’t already taking a tax credit on their property taxes available on their state income tax filing.
Click here for more details from the Nebraska Examiner.