Nebraska Legislature overrides governor's gas tax veto

April 17, 2008

The Nebraska Legislature voted 34-15 April 7 to override Gov. Dave Heineman’s veto and increase the price of gasoline by approximately 1.2 cents per gallon of tax.

A gallon of regular gas currently costs approximately $3.35. The tax increase will put Nebraska’s total tax at an estimated 26.7 cents per gallon.

"Today, the Legislature raised taxes on every working family in Nebraska," Heineman said after the override.

The Nebraska Legislature voted 34-15 April 7 to override Gov. Dave Heineman’s veto and increase the price of gasoline by approximately 1.2 cents per gallon of tax.

A gallon of regular gas currently costs approximately $3.35. The tax increase will put Nebraska’s total tax at an estimated 26.7 cents per gallon.

"Today, the Legislature raised taxes on every working family in Nebraska," Heineman said after the override.

"With gas and diesel prices at record highs and predicted to go even higher, food costs increasing and health care costs soaring, now is not the time to increase the gas tax."

The Legislature argued that the increase was necessary to preserve Nebraska's roads and promote economic development.

"It's not easy to stand up and argue for a tax increase," said State Sen. Lavon Heidemann of Elk Creek. "But this is the right thing to do. It is the responsible thing to do."

The added tax will generate enough money so that the State Department of Roads can pay additional salary and benefits recently approved for workers without having to use construction funds.

The debate over the tax is part of a broader discussion about financing highway construction. With the decrease of fuel tax revenues and the increase of construction costs, lawmakers in Nebraska and other states have been discussing new ways to finance future highway building.

The increase will be effective July 1.

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