LINCOLN — A slimmed-down proposal to raise Nebraska’s cigarette taxes failed Wednesday to advance from a state legislative committee.
That makes it doubtful that the measure, which would double cigarette taxes to $1.28 per pack, will be considered this year.
As originally proposed, Legislative Bill 436 would have tripled the state’s tobacco taxes, raising about $125 million in revenue a year.
Under the bill, half of the money would be used to defray planned decreases in reimbursement rates for doctors, hospitals and other health-care provides for the poor. The rest would be used for other state budget needs.
The bill’s sponsor, Grand Island Sen. Mike Gloor, had proposed trimming back the tax increase to 64 cents a pack, keeping Nebraska’s taxes below Iowa’s. But a motion to advance his amended proposal from the Legislature’s Revenue Committee failed to get a second.
Bellevue Sen. Abbie Cornett, who chairs that committee, said it would be difficult to advance such a tax hike this year even if it was smaller.
Some had hoped the bill would advance as an option if the state’s budget cuts don’t close a nearly $1 billion gap between anticipated spending and projected revenue. Polls show that a majority of the public supports increases in tobacco taxes.
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402-473-9584, paul.hammel@owh.com
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