Bill Seeks Repeal of City Sales Tax Law


LINCOLN, Neb. (AP) -- An influential Nebraska lawmaker wants to repeal a city sales tax law that was passed over Gov. Dave Heineman's objections.

Sen. Ernie Chambers of Omaha will present the measure Wednesday to the Legislature's Revenue Committee.

The Legislature passed a law last year that allows Nebraska cities to increase their local sales taxes to as much as 1.5 cents per dollar, if they receive voter approval. The state already levies a 5.5-cent sales tax.

Heineman opposed the measure last year, saying cities should focus instead on cutting costs, but lawmakers overrode his veto.

Chambers plans to argue that sales tax increases hit poor people the hardest, because they consume a larger share of their income.