A special legislative committee will review the state tax system and suggest changes to the legislature for next session.
Members of the Tax Modernization Committee held their first session at the Capitol on Wednesday, a day-long work session that became a primer on the taxes collected by the state. A second meeting has been scheduled for August. Public hearings will follow.
The legislature agreed to creation of the committee after it rejected Gov. Dave Heineman’s proposal to eliminate the state income tax in exchange for the elimination of about half the sales tax exemptions the state grants. After declining to move on the governor’s proposal, the Unicameral agreed to undertake a comprehensive review of the state tax system.
Gov. Heineman eagerly awaits the findings of the committee.
“I have very high hopes that this Tax Modernization Committee will provide several options for tax relief in their December report,” Heineman tells reporters during a news conference.
Heineman might have suffered a setback during the past legislative session, but he wants tax relief to be the top issue in the next legislative session.
“Taxes are too high in this state still, even though we’ve made good progress. Property taxes are too high. Income taxes are too high. Sales taxes are too high. Occupation taxes are too high,” Heineman asserts. “So, I think they need to come up with a plan of action to address these issues.”
AUDIO: Brent Martin reports [:45]