Reactions mixed to Nebraska Gov. Jim Pillen’s property and sales tax proposal

LINCOLN, Neb. (KLKN) — During the State of the State address, Gov. Jim Pillen said tax property relief is one of his main priorities for Nebraska.

He said the state needs to cut property taxes by 40%.

A Nebraska homeowner said the state’s current tax system puts too much burden on property owners.

“Fair property taxes are necessary, but it shouldn’t be a cash cow for the government,” said Pamela Lay from Hastings.

One of Pillen’s proposals to decrease property taxes will increase in state sales taxes. 

The state sales tax rate would climb by 2 cents, from 5.5 cents to 7.5 cents.

That would make Nebraska’s sales tax the highest in the country, according to the Sales Tax Institute. 

Some agree with the governor on this proposal.

“I’m in favor of shifting some of that burden to sales tax and away from property taxes,” said Gregg Stofer, a former Nebraska landowner who just moved to Iowa.

The OpenSky Policy Institute said lower-income Nebraskans would pay a bigger percentage of their income in sales tax compared with wealthier families.

A visitor from Indiana said if Nebraska’s sales tax goes up, he’ll think twice before spending money here.

“I think everybody is still going to have to pay, and even though if you’re not from the state, you’re going to pay for the taxes for other people’s property,” Don Polley said.