Cities are allowed to impose a local option sales tax on their communities. As of last year, approximately 200 communities had authorized a local option sales tax rate of up to 1.5 percent. This is on top of the state sales tax rate of 5.5 percent. Last year, legislation was passed, in spite of a Governor’s veto, to allow cities to increase their local option sales tax to a maximum of 2 percent. Three communities have voted to take advantage of this increase in local tax revenue – Alma, Sidney and Waterloo. Voters in Nebraska City and Bellevue rejected the proposed increase.
This year, Senator Ernie Chambers of Omaha introduced LB 266, which would repeal the increased tax authority for communities. The bill had a public hearing before the Revenue Committee in February but was not advanced to the floor of the Legislature. Late last month, Senator Chambers filed a motion to place LB 266 on General File. When discussing the motion this past week, the allotted time on the agenda expired before a vote was taken on the motion. Senators did mention that an amendment is pending on LB 613, the comprehensive tax study, that would place a moratorium on this increased taxing authority pending the outcome of the study.
Lawmakers voted to advance LB 216, a bill introduced and prioritized by Senator Amanda McGill of Lincoln. This bill proposes to establish the Young Adult Voluntary Services Act. Former state wards between the ages of 19 and 21 could voluntarily request continued services from the state. The primary costs associated with the bill would be for housing assistance and case management. In an effort to reduce the estimated $3.3 million dollar fiscal impact in each of the next two years to less than $1 million per year, an amendment was adopted to limit the program to foster children that were abused and neglected. Federal funds are available in addition to the state general funds. The bill aims to replace a current program that was not well-utilized for state wards that “age-out” of the system. To be eligible, youth would have to be enrolled in post-secondary education or working 80 hours per month. LB 216 provides a support system for vulnerable youth, in an effort to improve long-term outcomes in education, employment and housing stability.
This past week, the Legislature also discussed LB 637, which was introduced and prioritized by Senator Norm Wallman of Cortland. If the Nebraska Department of Environmental Quality intends to adopt a rule or regulation that would impose requirements different than federal regulations or increase costs on regulated persons or entities, the department would have to prepare a statement that describes the annual economic impact of the rule. I spoke on the floor regarding the significant effect more stringent state regulations can have on local entities, thus showing why I am supportive of the proposed additional requirements placed on DEQ.
Senators gave first-round approval to LB 57, introduced and prioritized by Senator Tyson Larson. Under LB 57, an applicant who uses grant funding from the Environmental Trust Fund to purchase real property, and subsequently seeks to transfer such property to a federal land management agency, which transfer would result in the removal of the property from the tax rolls, shall have such transfer approved by the Environmental Trust Board. The contract would also have to provide information on how the taxes to the county would be replaced.
The Clerk of the Legislature’s office coordinates an annual Unicameral Youth Legislature, which will be held June 9-12, 2013. The four-day camp is a legislative simulation for students, ages 14-17, in which they take on the role of lawmakers. Student senators sponsor bills, conduct committee hearings, debate legislation and discover the unique process of the nation’s only unicameral. The Unicameral Youth Legislature is jointly sponsored by 4-H and the University of Nebraska Big Red Summer Camps program. More information on the details can be found at www.nebraskalegislature.gov/education/unicamyouth.php.
The Speaker of the Legislature announced this past week that we will start working into the evening most nights in April, with even later nights expected in May, prior to adjournment in June. As we debate bills that have been prioritized, I encourage you to contact me with your thoughts and opinions. I can be reached at District #1, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My e-mail address is email@example.com and my telephone number is (402) 471-2733.