Senators Act on Airbnb, Airbags; Discuss Taxes, Wind and Prison Pay

Another proposal to lower property taxes by raising other taxes got a hearing before the Revenue Committee Friday. And lawmakers gave final approval to dozens of bills, on subjects ranging from Airbnb-type rentals to airbags.

Candy, soft drinks and bottled water would be taxed, alcohol and cigarette taxes would increase, more corporate income would be taxed, and more money would be funneled to schools under Sen. Sue Crawford’s tax proposal.

Crawford told the Revenue Committee her plan would accomplish what people want. “Nebraska has a property tax problem, and LB 614 is a responsible solution on the table that provides structural reform, while protecting key services like health care, roads, and K-12 schools. With the distribution of revenue generated under LB614, property taxes can be immediately reduced,” she said.

The bill would raise an estimated $300 million. It was supported by a long list of school groups, but opposed by business representatives, including Ron Quinn of Tenaska Energy. Quinn objected specifically to the corporate tax provisions of the bill, which he said risked driving businesses and people out of the state. “Finding ways to grow the population and economic base of Nebraska and creating and maintaining a pro-business environment is the way to help address the high property and income taxes and workforce shortage that impacts the state statewide,” he said.

Members of the Revenue Committee are expected to begin soon trying to put together a package for the entire Legislature to consider.

Also Friday, Sen. Tom Brewer renewed his attack against opponents who sidetracked his proposal prohibiting the use of eminent domain for transmission lines to wind farms. Among his complaints, Brewer said there’s a lack of information about so-called “decommissioning” plans for what to do with wind towers at the end of their useful life. “We have 800-plus towers, we’re projecting to build thousands more, and we have no clue what’s going to happen when these towers cease to be able to do the job that we put them there to do and they just become these monuments to greed and stupidity,” he said.

State law does require wind developers to comply with any local regulations on decommissioning, and to post a bond to pay for it.

Brewer also said he’s preparing an amendment to force wind projects to go through an approval process similar to the one the proposed Keystone XL pipeline had to go through.

And senators gave final approval Friday to dozens of bills.

Among them was a measure that says cities can’t prohibit short-term rentals of residential property, like those offered through Airbnb. They can still regulate them, to prohibit using rental properties for things like sexually-oriented businesses.

Another bill passed makes it illegal to manufacture, sell, or install counterfeit airbags. Violators could face up to two years in jail and a fine of $10,000.

Lawmakers also passed a bill to require the State Patrol to study how to improve reporting and identification of missing Native American women and children.

One proposal that didn’t pass would have let people who leave their jobs in order to care for seriously ill family members qualify for unemployment benefits. It fell five votes short of passing; Sen. Sue Crawford, its sponsor, said she will try another vote to get it passed.

And Sen. Kate Bolz said she’s disappointed in a ruling by the Commission of Industrial Relations against granting a pay increase to workers in the state’s prisons. The Commission compared prison workers pay to those in seven other states: Indiana, Kansas, Wyoming, Iowa, Wisconsin, Arkansas and Oklahoma.

“We’re disappointed that the final result does not include a pay increase for our hardworking Department of Correctional Services workers. We think they do in fact deserve a pay increase and will continue to work on LB109, which is our legislation that would require an increase in pay for those employees who have significant experience and skills in the area of corrections,” she said

Critics say a lack of pay increases based on longevity contributes to high turnover and low morale in the Department of Correctional Services. Bolz said she plans to try next week to get the Government, Military and Veterans Affairs Committee to advance her proposal.