LINCOLN- Late Tuesday night, a new 63-page amendment was filed on Gov. Pillen's property tax reduction plan that ditches his idea of raising state sales tax by 1 cent. The slimmed-down proposal, which is intended to help the bill pass this session, opens the door for a special session this summer to more fully accomplish the ambitious goal of reducing property taxes by 40%.

The amendment, made to LB388, would hike taxes on cigarettes to $1, impose a 100% tax on edible hemp products, impose a 20% tax on vaping products and skill games, and eliminate sales tax exemptions on products including pop, candy, and veterinary services for pets. The bill would also impose a 3% cap on revenue growth by local government.

Pillen's initial proposal to raise the state sales tax was pilloried by conservative and progressive groups alike. Conservatives in particular condemned it as a "tax shift" that didn't actually result in a meaningful tax decrease, while progressive groups argued it would negatively impact low-income Nebraskans. On Wednesday night, the amendment was adopted.

During debate Wednesday, the proposal was slimmed down even further, and is now expected to reduce property taxes by 22% rather than Gov. Pillen's desired 40%. However, because of this reduction, lawmakers believe a special session to tackle property taxes is almost assured.

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