State lawmakers in Nebraska Wednesday moved to block a new commuter tax in the City of Omaha, reports the Omaha World-Herald
. The measure is expected to be signed by Gov. Dave Heineman.
Omaha had planned to impose a $50 fee on non-resident employees who commute into the city to work. The city wanted to use the money for street maintenance, and was requiring employers to collect the fee from their workers. The first payment was expected to be sent by April 1.
State Sen. Abbie Cornett of Bellevue, who introduced the bill to block the new tax, said the measure is a policy decision by the Legislature to keep a municipal body’s taxing authority limited to the municipal borders.
Heineman called for the city to cut spending without looking for more tax revenue.
“The mayor needs to learn how to cut expenses,” he said. “The City of Omaha should follow the lead of state government and balance its budget without raising taxes.”
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