Governor Pillen mandated a special session on July 25, 2024, with the primary objective of addressing his property tax reform proposals. While the intent to reform property taxes might seem beneficial on the surface, the suggested changes have the potential to cause significant harm to Nebraska families, particularly women who head many households. The proposed reforms could further jeopardize the economic stability of those already struggling, with a possible dramatic increase in sales tax on essential everyday goods and services (120+ potentially impacted), coupled with cuts to critical agencies.

One alarming aspect of the Governor’s plan is a proposed new tax on debt counseling services. This tax would disproportionately affect those who are already overwhelmed by debt, further widening the gap between lower-income families—many led by women—and the wealthy. Penalizing those seeking financial help only deepens their economic struggles.

Additionally, Nebraska families may soon face a 7.5% tax on motor vehicle repair services. For lower-income families, unexpected vehicle breakdowns can already mean being stranded, unable to afford the repairs needed to get to work. Adding a tax to these emergency expenses will only exacerbate the problem of job insecurity, pushing families further into financial instability.

Another concerning proposal is a 7.5% tax on home repairs. This would place an even greater financial burden on those who already struggle to maintain safe and stable housing. For many, this could mean being forced back into the rental market amidst an already severe housing crisis. Notably, there appears to be no relief in sight for renters, many of whom are women heading households already facing a significant gender wage gap and the constant threat of eviction.

The proposed tax changes extend to industries focused on women, including nail salons, massage therapy, hair care, and aesthetician services. A 7.5% tax on these services could drive many small businesses out of operation, resulting in lost income and further economic hardship for the families that rely on them. Additionally, youth-focused organizations like the YMCA, which provide essential activities and sports opportunities, may also face a 7.5% tax on memberships, threatening the well-being of our children.

Finally, the proposed cuts to agencies like SNAP (Supplemental Nutrition Assistance Program) are particularly alarming. SNAP provides essential food benefits to low-income families, helping them afford nutritious food crucial to maintaining good health. Cutting this lifeline could have devastating consequences for the most vulnerable members of our community.

It's time to act. Reach out to your State Senator and voice your concerns. This article highlights just a few of the potential taxes that could harm the financial security of Nebraska's women and families. Struggling families in Nebraska should not be forced to bear the burden of these taxes.

At McGill Law, we stand with you. Contact us today to discuss your legal needs in Omaha and Lincoln at 402-548-5418.