Legislature talks taxes, trans athletes, license plates and more

By Fred Knapp , Senior Reporter/Producer Nebraska Public Media

March 13, 2025, 5 p.m. ·

The Revenue Committee meets Thursday (Photo by Fred Knapp, Nebraska Public Media News) — The Revenue Committee meets Thursday. (Photo by Fred Knapp, Nebraska Public Media News)

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In the Nebraska Legislature Thursday, bills to institute or increase taxes on candy, pop, cigarettes, and luxury services got a public hearing. Proposed restrictions on trans athletes in women’s sports got delayed in committee by a technical question. And lawmakers approved or advanced a series of smaller bills, despite criticism of how they are handling the budget.

The Revenue Committee heard testimony on proposals Sen. Tom Brandt introduced to increase tobacco taxes and begin taxing pop, candy, and nearly two dozen services, ranging from dry cleaning and charter flights to telemarketing and pet grooming. Brandt said his bills would help with the state’s budget and property tax situation.

“Between LB169 and 170 (with an amendment) we're looking at generating approximately $120 million in new revenue for the state. This will help cover the budget shortfall, and will be used to fund property tax relief measures such as LB303 from Senator Hughes and the Education Committee. At their core, these bills are about broadening Nebraska sales tax base to better reflect the modern economy,” he said.

A long parade of witnesses from affected industries opposed the proposals. Among them was Bryan Slone, president of the Nebraska Chamber of Commerce and Industry.

“This is again an effort to create a tax shift for property tax purposes," he said. "It's not that we're against property tax reduction, but simply to create new taxes, to tax one group of people who tend to be poor, who tend to be middle income, to transfer money through the credit mechanisms to another, it's a tax shift. That does not mean that sales taxes should never be put on the table. It does not mean the tax increases should never be put on the table, but this is not tax reduction. This is just changing who pays in Nebraska."

Meanwhile, the Government, Military and Veterans Affairs Committee held an executive session to consider Sen. Kathleen Kauth’s proposal to prevent trans athletes from participating in women’s sports.

Discussion centered on one provision in an amended version of Kauth’s proposal that would require students to provide confirmation of their sex “by means of a doctor attestation.”

Committee legal counsel Dick Clark said “attestation” is a legal term of art that could require a doctor’s letter to be notarized. Sen. Megan Hunt, an opponent of the bill, said that could require every student athlete to get a notarized certificate in order to participate in sports, which she called “silly.”

Committee chair Sen. Rita Sanders suggested lawmakers delay further consideration of the bill until the requirement is clarified. Asked after the meeting her current feeling about the bill, Sanders, who has previously been positive toward the bill, was noncommittal.

“Well, I'm not real sure until we have some more clarity on the bill. Because how do you debate a bill when you're not sure what exactly we're debating, right? So let's clean up some language so we have a more focused bill for floor debate,” she said.

Interviewed after the meeting, Kauth said she did not intend to require students to provide a notarized statement.

“It’s like a sports physical. I mean, any kid who does any sort of sports, you do a physical to make sure that you're healthy. That's all it is. It’s on, you know, your sports physical. Is this a boy? Is this a girl? So not notarized, nothing that formal,” she said.

Kauth said she’s willing to change the wording of the requirement.

Also Thursday, lawmakers approved or advanced a series of smaller bills, despite criticism of how they were proceeding. Senators gave first-round approval to a proposal changing motor vehicle regulations. Among the changes, it would say that starting in 2029, motor vehicles would only have to have one license plate. Sen. Brad von Gillern, sponsor of the change, said 26 other states already require only one plate, and car manufacturers are acting accordingly.

“It is now the norm for cars to come from the manufacturer without brackets or mounts per front plate. Owners of new vehicles are left with three options. Pay the dealership $75 to $100 to furnish and install a front plate holder… pay a $50 annual fee for windshield decal conferring the right to display a single plate. Third option is to drill a hole in the front bumper of your new dream car. None of these seem very appealing,” he said.

Brandt opposed the change, saying it could make it more difficult for law enforcement to identify vehicles of interest if they were parked to obscure the rear plate. But senators voted 30-5 in favor of the change. The bill still must pass two more rounds of voting.

Senators also gave final approval to a series of other bills, including one that would make it more difficult to sue companies for losing customers’ data if they are hacked.

Another bill that passed would increase landfill fees. Sen. Danielle Conrad objected to the overall direction senators are heading.

“I think it's wrong to ask Nebraska citizens to pay more for their park permits and their garbage fees and everything else coming down the pike, because this administration and this body can't manage a budget, which is our only constitutional duty and requirement. We put forward tax cuts that benefit the wealthiest that were too big, too fast, and they're ripping a hole in our budget,” she said.

Nevertheless, senators approved the landfill fee increase on a vote of 44-3.