Committee hears sales-tax-for-property-tax swap, first responder protections advance
By Fred Knapp 
, Senior Reporter/Producer Nebraska Public Media
11 de Febrero de 2026 a las 17:00 ·
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The latest proposal to cut property taxes by expanding sales taxes ran into a familiar raft of opposition in a legislative hearing Wednesday. Meanwhile, senators advanced a proposal to protect first responders from discipline or legal liability for what they say in peer support sessions after experiencing trauma.
Sen. Ben Hansen is the sponsor of a far-reaching proposal (LB1257) aimed at cutting school property taxes by imposing sales tax on currently exempt goods, including manufacturing machinery, ag chemicals, pop and candy, as well as services. His bill would reduce the maximum school property tax levy from $1.05 per $100 of valuation to 60 cents over two years.
Hansen told the Revenue Committee he wants to change the way opponents of change frame the discussion.
“Over the years, they come to us and say, ‘Don't get rid of our exemption because of X, Y and Z.’ I want them to now come to us and say, ‘This is why you should give us an exemption -- justify the need,’” Hansen said
Connie Knoche of the Open Sky Policy Institute was the only person to speak in support of the proposal, highlighting the services it would tax.
“Sales tax will be assessed on major services like car repair, personal care, accounting, legal services, advertising and telemarketing, with only health care services remaining exempt,” Knoche said.
Ansley Fellers, representing grocery, retailers, hospitality, bankers and independent business associations, opposed the bill.
“Our associations remain generally opposed to a shift to taxing services and goods like soda and candy without some amount of reduction in the sales tax rate. A shift to sales taxes, especially without a guarantee of tax relief, unfairly burdens retailers and their customers,” Fellers said.
The bill also drew opposition from Korby Gilbertson, representing 43 groups ranging from advertisers to homebuilders and casinos; Hunter Traynor, representing the state and Omaha chambers of commerce; and others.
Tyson Schaffert, a tattoo artist opposed to the bill, suggested alternatives.
“If the goal is real, sustainable revenue, there's better options in this. First, legalize and tax marijuana; that would create jobs, and it would probably solve all the problems we're talking about here today. Second, tax high earners and large corporations proportionately. Third, close tax loopholes,” Schaffert said.
Hansen said his goal is not to raise taxes overall, but rather to be “revenue neutral,” merely substituting one revenue source for another. That led Sen. Brad von Gillern, chair of the Revenue Committee, to ask why the Legislature should bother to make the change.
Hansen replied that “Sales tax(es), in my opinion, are much more fair than property taxes. Property taxes, I think, are an unfair, unjust tax that taxes people out of their homes, and ultimately, the government owns your land, which I think is fundamentally not just unconstitutional, but it's immoral,” he said.
Others expressed disbelief that such a major change could be accomplished with only 35 days remaining in the 60-day legislative session. Hansen said he is willing to make changes to improve the bill’s chances and combine it with other ideas as the session continues.
Also Wednesday, lawmakers gave first-round approval to a bill (LB816) that protects first responders from discipline or legal liability for what they say in peer support sessions. The bill’s sponsor, Sen. Tanya Storer, explained the need.
“First responders witness trauma that most Nebraskans will never see: fatal accidents, violence against children, overdose deaths and human suffering on a scale that can take a profound toll,” Storer said.
The bill would apply to police, firefighters and certain hospital workers. Storer said talking to peers who’ve been trained to provide support after traumatic incidents has proven more helpful than counseling or chaplaincy services. She said many peer support programs exist, but sometimes people are reluctant to use them.
“Without statutory confidentiality and privilege protections, first responders are reluctant to use these existing programs because they fear their conversations could be subpoenaed, used against them in disciplinary proceedings or disclosed in litigation,” she said.
Sen. Carolyn Bosn, chair of the Judiciary Committee, said the bill as amended would not interfere with law enforcement.
“The protections do not override mandatory reporting obligations such as reporting child abuse or neglect or abuse or exploitation of a vulnerable adult,” Bosn said. "The amendment also allows disclosures to address credible safety threats and makes clear these protections cannot be used to shield criminal conduct."
Senators voted 28-0 to advance the bill.
Lawmakers also gave first-round approval to a bill (LB771) that removes a statewide ban on dynamic pricing – that is, increased prices to reflect demand – for ridesharing services when the governor declares an emergency. As amended, the bill would keep the ban for seven days only in areas affected by the emergency. Senators advanced the bill on a vote of 35-0.
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