Senators discuss taxes, torts and SGOs on final day of select file debate

On the last day of select file debate during the 2024 legislative session, senators advanced bills on topics including taxes, sexual assault cases and private school scholarships.

The legislature spent most of Wednesday afternoon debating a bill expanding sales taxes in order to reduce property taxes.

Sen. Lou Ann Linehan’s LB388 would create a digital advertising sales tax and increase taxes on cigarettes, vaping, lottery tickets, cannabis derivatives and games of skill.

Sales tax exemptions for candy, soda, storage facilities and veterinary services would also be eliminated.

The bill caps the percentage cities and counties can grow their annual budget and reduces school property taxes by 30% directly instead of requiring taxpayers to apply for a 30% tax credit, according to the Governor’s Policy Research Office.

Amendments to the bill removed the 1% sales tax increase previously proposed and increased the state’s earned income tax credit from 10 to 15%.

Sen. Danielle Conrad said she supported the earned income tax credit but criticized the bill as a whole for targeting low-income Nebraskans in order to reduce the property taxes of the wealthy.

“Most of the revenue generators and tax increases contained in LB388 are essentially attacks on the poor,” she said. “The EITC (Earned Income Tax Credit), a modest increase there, is a little tax relief for the poor.”

The tax bill advanced to the final round of debate on a 28 to 14 vote, with support and opposition from both progressives and conservatives.

A proposal from Linehan to allocate $10 million dollars to Scholarship Granting Organizations through the state treasurer’s office also advanced in the Nebraska Legislature Wednesday evening.

Linehan’s bill would replace her legislation passed last year, called the Opportunity Scholarships Act, which allows for up to $25 million dollars in state tax credits for donations to scholarship granting organizations.

The Opportunity Scholarships Act is currently being challenged in a referendum, which this year's legislation would make irrelevant.

After two hours of discussion, a vote to end debate received 33 votes, the exact number needed to enable the legislature to vote on the bill.

The bill then advanced to the final round of debate on a 30 to 15 vote, with 3 senators present but not voting.

The legislature also advanced a bill allowing school districts and political subdivisions to be sued over the sexual assault of children.

Sen. Justin Wayne’s LB25 enables victims to sue public entities up to one million dollars if a public employee sexually assaults a minor.

The bill advanced on a 28 to16 vote with 4 members present, but not voting.