COLUMBUS- Nebraska Governor Jim Pillen's approach to reducing property taxes will likely avoid affecting income tax and focus on sales and sin taxes. Pillen has sought to reform property taxes through a broad sales tax base, which opponents assert will raise taxes on lower-income individuals in the state. If the state proceeds with Pillen's plan, Nebraska will have shifted 40% of the state's tax burden away from property tax by the end of the year.

Some Nebraskans are concerned that the progress made last year after a long-awaited reduction in state income taxes will be undone by Pillen's reforms. Some suggest that a hard cap on local spending increases will help stop the drastically increasing valuations in Nebraska. Pillen's efforts to hone in on sales tax exemptions may make his path to reform more difficult.

There are a few questions surrounding school funding regarding Pillen's reform. He plans to have the state overtake all of its public school funding, which will seemingly have far-reaching consequences. Businesspeople across the state are looking for any indication of what Pillen's tax reform will truly look like, but his unpassed bill from the last legislative session gives some clues.

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