FREMONT- While Nebraska collects around $2 billion in sales tax per year, another $6.5 billion is left off the table due to more than 100 sales tax exemptions. Governor Pillen says all exemptions are on the table as he attempts to reduce property tax this year, ranging from laundry services and haircuts to agricultural and business inputs. Taxing these inputs has been condemned by some senators across ideological divides. Gov. Pillen's goal is to reduce property tax by eliminating some sales tax exemptions.

The discussion around sales tax revolves around Gov. Pillen's effort to reduce property tax by 40% or $2 billion in his first two years. He has said that he wants to see Nebraska collect less taxes in general. Gov. Pillen hopes to use town halls to rally Nebraskans to press their senators into supporting him. He put pressure on the senators by stating that if one special session fails, he will continue to call them.

Some senators believe that this proposal wouldn't have a huge impact, but others believe that the change would greatly impact lower-income families. Opponent of the bill, State Senator Julie Slama, noted "There’s no guarantee that that money from increased revenue is going to be one-to-one property tax relief." The opposition's main concern is that the change would not reduce taxes, but simply shift the burden to others.

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