LINCOLN- Nebraska Governor Jim Pillen announced a shift from his original property tax relief proposal to a new plan developed by State Senator Lou Ann Linehan and the Revenue Committee. This new plan, which replaces Pillen's original proposal with Legislative Bill 9 introduced by State Senator Jana Hughes, aims to offset $1.8 billion in school-related property tax revenue by expanding the state sales tax base and including new taxes on items such as alcohol, candy, and gambling. The plan also removes caps on local spending for public safety and proposes using state tax dollars to reduce property tax burdens for natural resources districts and county jails.

The new proposal diverges from Pillen's original plan by maintaining sales tax exemptions for home and auto repairs, legal, and accounting services while introducing a 2% sales tax on new agricultural or manufacturing machinery and equipment. Supporters argue the plan addresses concerns about funding public safety and local government responsibilities, while opponents like State Senator Danielle Conrad criticize it as a "reverse Robin Hood scheme" and plan to fight what they call one of the largest tax increases in history. Despite differing views, the plan emphasizes a broader sales tax base to provide property tax relief and aims to be more acceptable to various stakeholders.

The Revenue Committee plans to consolidate multiple property tax relief bills into LB 9, seeking to reduce the maximum school district tax rate more rapidly than originally proposed by Hughes and offering immediate property tax relief. Although the plan has faced resistance, Linehan believes it will gain support across Nebraska, as it shifts the tax burden from property taxes to sales taxes, giving consumers more control over their expenses. Governor Pillen emphasizes the need for structural relief and spending caps to ensure long-term benefits, indicating his willingness to adapt for the purpose of legislative progress.

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