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Office of Governor Pete Ricketts

Gov. Ricketts Issues Gas Tax Veto

This afternoon, Governor Ricketts vetoed LB610 and LB610A which would raise Nebraska’s gas tax. This tax increase passed by the Legislature would make the state’s gas tax the 16th highest in the nation while also surpassing the gas tax rate of every state that borders Nebraska.

“The number one issue I hear about from hardworking Nebraskans is the need for tax relief,” said Governor Ricketts. “Whether they are farmers and home owners seeking relief from high property taxes or businesses being held back by our second-highest-in-the region income tax rates, the message is clear:  Nebraskans want and deserve tax relief.

“LB 610 would do the exact opposite by imposing a $75 million per year tax increase.  The new tax would be added to the 25.6 cents Nebraskans are already paying in state gas tax per gallon of gasoline.  This is a 23 percent increase.

“At this level, Nebraska’s gas tax rate would be the 16th highest in the country – surpassing the national average and surpassing the gas tax rate of every state that borders our state.  The increased gas tax rate would also be about two times our state’s top income tax rate.” 

“I remain committed to addressing our state and local infrastructure needs.  This is an area that is vital to our continued economic growth.  I cannot, however, support raising taxes as the first solution to this issue.”

Read Governor Ricketts’ full veto message here.