Pillen proposes removing 100-plus exemptions, raising ‘sin taxes’ to cut property taxes

LINCOLN, Neb. (KLKN) — Gov. Jim Pillen unveiled his tax overhaul plan on Thursday, promising to cut some Nebraskans’ property taxes by half.

Lawmakers will consider the proposal in a special legislative session that is set to start July 26.

The plan focuses on shifting the cost of education from local taxpayers to the state.

School districts could still levy property taxes, with voters’ approval, if they don’t receive enough state funding.

Over a three-year period, the general fund levy for school taxes would be eliminated.

To pay for its new education expenses, the state would eliminate more than 100 sales tax exemptions.

Pillen said that would raise $950 million for property tax relief.

In his plan, the governor said he also wants to increase “sin taxes” on cigarettes, consumable hemp products and keno gambling.

He said that would bring in $200 million to state coffers.

The Nebraska chapter of free-market think tank Americans for Prosperity slammed the plan.

“Governor Pillen’s scheme to shift more taxes onto working- and middle-class Nebraska families was defeated once, and this special session will be no different,” Director John Gage said in a statement.