Gov. Pete Ricketts Weighs in After Legislative Bill 44 Moves Forward

Gov. Pete Ricketts Weighs in After Legislative Bill 44 Moves Forward
World-Herald News Service

LINCOLN – Nebraska’s Legislative Bill 44 will soon be on the Governor’s desk after supporters overrode a filibuster to advance the bill on Tuesday.

LB 44 is designed to help Nebraska collect more online sales tax revenue by enforcing an online sales tax on out-of-state businesses. It also requires online retailers to report taxable sales to buyers, as well as the total amount paid by Nebraska purchasers to the Department of Revenue. Nebraska already requires residents to pay online sales taxes via their income tax returns, but few people comply.

Nebraska lawmakers advanced the bill on a 34-7 vote after supporters overcame a filibuster. Those against the bill say it provides false hope of a level playing field, which is what the bill is intended to do.

Governor Pete Ricketts is also against the bill. On Tuesday he released a statement saying, “Tax policy in the Legislature should be driven by a desire to enact sound laws which will pass constitutional muster.  LB 44 as advanced by the Legislature remains flawed and contains burdensome regulation and unnecessary red tape on companies doing business in Nebraska.  We should be cutting red tape, not creating more of it.”

If the current vote holds, the Legislature would override Gov. Ricketts expected veto and move to a final vote.

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