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Fuel tax bill under consideration in Nebraska

Drivers in Nebraska would pay an extra 2 cents per gallon of fuel under a proposal in the state Legislature.

The fuel tax increase, which would take effect in October, is part of a package of bills under consideration by the Revenue Committee to generate an additional $46 million a year for road work in the state, the Omaha World-Herald reported.

The fuel bill – LB1181 – would generate $24 million to be distributed among cities and counties.

The other highway funding proposals include:

  • Shifting a half-cent of the sales tax on motor vehicles from the general fund to Nebraska’s highway trust fund. LB1040 would take $15.8 million from the general fund to be used for roads. Cities and counties would get $7.4 million.
  • Depositing sales taxes paid on leased automobiles in the highway trust fund. LB1215 would take $6.8 million from the general budget for roads. Cities and counties would get $3.2 million.
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