WOWT: Lobbyists to fight sales tax exemption bill

Omaha's mayor has hired a prominent lobbyist to fight a bill before the Nebraska Legislature.

Walt Radcliffe will be paid $5,000 a week for at least two weeks according to Mayor Jim Suttle's spokesperson. The mayor says it's a small price to pay to save property taxpayers millions. "You're asking about $10,000 against $23-million so you do the math," says Mayor Jim Suttle. "I have to protect the property taxpayer of the city. I can't have the legislature willy-nilly doing things when the burden ends up on the property tax."

A tax exemption bill sponsored by State Senator Tom White of Omaha is expected to reach first round of debate on the floor of the legislature on Thursday. It's last on the agenda so it may be pushed back until Monday.

Omaha residents are expected to pay millions of dollars in fees over the next two decades to help finance a sewer overhaul -- a $2-billion unfunded mandate.

LB 952 would prevent the city from collecting a sales tax on those fees. The average sewer fee on our bill will gradually go up from $15 to $50 a month in 2017 as a way to pay for it. We also pay a sales tax on that fee.

Senator White has called the tax unfair. "Regardless of how many high-powered Lincoln lobbyists are hired to oppose this bill, I'll continue to fight to end the double tax..." said Tom White. "Rather than paying lobbyists to fight tax relief and threatening to raise property taxes, the City of Omaha should control spending and cut waste."

Without the tax, Mayor Suttle has said it may become necessary to cover the loss with an increase in property taxes.

Currently we pay a sales tax on the sewer fee. That wouldn't change with White's bill. It would only target future increases tied to the unfunded mandate. White estimates his repeal would save metro families and businesses $325-million.

"If you're going to take money from the taxpayer, take as little as possible," says White. "You do it this way and out of every $7....the state gets $5. It's sucked out of the metro and it doesn't come back. This is incredibly wasteful."

"I didn't think this thing would get out of committee," says Mayor Suttle, "And now that it's on the floor - I had to get serious so we went after the best lobbyist in the business."