By Cheryl Stubbendieck

Nebraska Farm Bureau vice president/public relations

State Sen. Carroll Burling of Kenesaw wants the legislature to create the Nebraska Tax Reform Policy Commission. He and a dozen colleagues have introduced LB 542, which would establish a framework similar to the approach used in the Water Policy Task Force. The new body would be charged with taking an in-depth look at Nebraska's tax system and with making recommendations for improvement by November 2006.

Specifically, the commission would examine the laws, rules and regulations that have been adopted since the inception of the sales and use and income tax as the major source of state revenue. It would evaluate our current tax laws for fairness, equity and simplicity and recommend improvements where needed.

Commission members also would evaluate Nebraska's current business tax incentive programs and make recommendations about their involvement in any future tax policy. Their recommendations in this area are to include specific issues that should be considered by the legislature in its 2007 session.

The commission also would make recommendations to reform state tax laws to establish a balanced tax system that provides maximum economic development benefits and maintains necessary government services at what the bill calls an appropriate level. These proposals should encourage economic development, enhance sound businesses that provide good jobs and ensure adequate funding for needed government services.

The commission would have up to 30 members, appointed by the governor with recommendations from the legislature. Members would include state senators, state tax and economic development officials, city and county officials, and representatives of various other stakeholders, along with a tax policy expert.

Farm Bureau has long supported a comprehensive study of the state's tax system. As tax law has evolved, there's a need to step back from the way we do things now to take a look at how we could and should do them.

LB 542 contains the emergency clause, meaning it would become effective immediately upon passage, rather than after the 2005 legislative sessions ends sometime in late May or June. Even with that advantage, commission members would need their running shoes to complete their work by the end of 2006, given that it will take some time even to get them appointed. Sen. Burling focused the bill on making recommendations to the 2007 legislature because that body will include 20 newly elected senators because of term limits. The commission's recommendations would help inform them on the complex issue of the tax system, he told the Lincoln Journal Star in January.

The Water Policy Task Force has proven to be an effective way to deal with a complicated, controversial issue that has evolved over time. It's a model that should also work well in dealing with the state's controversial, complicated and evolving tax system.

Date: 3/23/05