Gov. Ricketts Denounces Regulations In Online Sales Tax Measure

LINCOLN – Gov. Pete Ricketts called a measure to require reporting requirements for companies that do not pay Nebraska sales tax for online purchases flawed and burdensome.

LB 44 advanced on a 34 to 7 vote after supporters overcame a filibuster.

Ricketts: “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.”

Sen. Dan Watermeier of Syracuse introduced the bill, saying businesses will pay sales tax to avoid the onerous reporting requirements.

Nebraska already requires residents to pay online sales taxes via their income tax returns, but few people comply.

The vote of 34 to 7 is also enough to overcome a governor veto.

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