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(Neb.) - Heineman vetoes Nebraska city sales tax bill

By: John Thayer Posted at: 04/12/2012 07:00 AM
LINCOLN, Neb. (AP) - Gov. Dave Heineman has vetoed a bill that would let Nebraska cities increase local sales taxes with voter approval.
The governor on Wednesday rejected the measure as promised, and said he disagreed with arguments that it was strictly about local control.
The bill would increase the ceiling for local sales taxes to 2 percent, up from the current 1.5 percent lid. Increases would require voter approval. Money not earmarked for tax reductions or other projects would have to go toward public infrastructure and economic development.
But Heineman says cities could easily play a "shell game." He says local officials could funnel the new money into expenses covered by existing tax dollars, which would free up that money to spend as they please.
     (Copyright 2012 by The Associated Press.  All Rights Reserved.)


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