A key state lawmaker is working to distance Gov. Pete Ricketts from talks on lowering income and property taxes this year.
Having one person's name attached to those discussions can limit options and result in "biases right out of the gate," said Sen. Jim Smith of Papillion, chairman of the Legislature's Revenue Committee, on Monday.
Ricketts has proposed two tax-related measures this year, one to cut income taxes and the other to reform the state's process for setting agricultural land values.Â
Smith told Revenue Committee members Monday that instead of advancing those bills, he will encourage members to hammer out a comprehensive package using a different bill as a placeholder.
Lawmakers still are sorting through what might be included, but Smith said he hopes the final product will include income tax cuts as well as something to benefit property taxpayers.
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"I'm hopeful that the governor will be pleased with what we are able to pull together comprehensively," Smith said.
Smith has worked for months to negotiate a compromise to address both income and property taxes, the subject of a fierce tug-of-war between the state's business and agricultural interests.
Because the state doesn't directly control property taxes, its easiest method for reducing property tax bills is direct financial assistance to taxpayers. That drains money from the state's budget at a time when revenue is already lagging.
Some groups want the state to fund property tax aid by raising sales taxes or eliminating sales tax exemptions, but Ricketts opposes those options.
"Our office is working closely with Chairman Smith to support his work in getting tax relief passed this year," Ricketts spokesman Taylor Gage said in a text message.