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Nebraska Governor Ricketts reiterates opposition to sales tax increase

Nebraska farm groups continue to push for property tax relief.

One of the proposals, supported by Nebraska Farm Bureau, would increase the state sales tax as a way of fixing the imbalance between property, income and sales taxes. But Nebraska Governor Pete Ricketts tells Brownfield he will not support any attempt to raise taxes.

“You can’t raise taxes to lower taxes. It just doesn’t make any sense, and that’s why I’m going to oppose raising taxes on our middle class families,” Ricketts says. “We have to look for other ideas that involve really controlling spending and making sure we make those changes that are going to help our farmers and ranchers be more competitive in the future.”

Property taxes account for 48 percent of the total combined collections of property, state sales, and state income taxes in Nebraska. Sales taxes represent only 19 percent, but Ricketts says increasing sales taxes is not the way to go.

“What’s going to happen is, most families are going to see that they’re going to pay more in sales taxes than they get back in that property tax relief plan—because it’s a flawed strategy,” he says.

Several bills aimed at tax reform have been introduced in the Nebraska legislature. Ricketts says he will continue to look for ways to provide property tax relief without raising taxes.

AUDIO: Governor Pete Ricketts