TAXING CANDY AND SOFT DRINKS IN NEBRASKA COULD RAISE $33 MILLION; SEN. WAYNE AIMES TO REPEAL SALES TAX ON RESIDENTIAL WATER

LINCOLN — State Sen. John McCollister of Omaha said Wednesday his proposal to expand the state sales tax base to include candy and soft drinks would raise an estimated $33 million in state revenue in the 2021-22 fiscal year and suggested “we could talk about where the money should go.”

McCollister’s measure, Legislative Bill 115, is written to funnel that new revenue into the state’s health care cash fund, but he told the Legislature’s Revenue Committee that he is open to “repurposing some of that revenue.”

“Nebraska now has a narrow sales tax, a high income tax and, Lord knows, a high property tax,” McCollister said.

Opponents to the bill spoke about the cost retailers will have to take on to revise current measures and softwares. 

In another hearing, Sen. Justin Wayne of Omaha introduced LB26 which would repeal the sales tax on the use and consumption of residential water. Wayne and supporters noted that water is not taxed when bought at the store but are taxed for it at home. Opponents testified that this would cost cities a loss of revenue.

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