What it does

The quarter-cent sales tax generates money (about $18 million per year, according to the city) specifically earmarked for street repairs and construction throughout Lincoln.

That money cannot be used on sidewalks, trails, traffic signals or other non-paving projects, and it cannot be used to pay back bonds. 

At least 25% of the tax revenue must be reserved for construction of new, non-residential streets. This provision is meant to set aside money that can be used to encourage private sector investment as the city grows. And at least 1.5% of the tax revenue must go toward the 33rd and Cornhusker Safety Improvement Project. 

The measure also creates a citizens committee, appointed by the mayor, to provide guidance on projects and oversight on how the money is spent.A vote “for” the tax also freezes impact fees for infrastructure projects at their current rate for the next eight years. Typically, those fees are adjusted for inflation each year. But as a compromise with the business community, the city agreed to freeze the fees at their current rate if the quarter-cent tax is extended.

The cost

The special tax is a quarter-cent or .25%. On a taxable $40 purchase, the special tax would charge an additional 10 cents. 

The city’s total sales tax rate with the special quarter-cent tax is 1.75%. The sales tax does not apply to items exempt from the state sales tax, including groceries, medicines and medical equipment, gasoline and others.

Arguments For

The additional $18 million per year over six years has enabled the city to complete 65 projects during that time. Without the special sales tax, the city estimates it would take 22 years to complete the same amount of work. Pushing that work further out would also push the price tag higher, supporters argue, as materials and labor get more expensive over time. 

Supporters note that visitors to the city also pay the special sales tax, so the burden of maintaining roads doesn’t fall solely on Lincoln residents. The city says that non-residents contribute 30% of the special sales tax revenue.

Failure to pass the measure, supporters say, will result in poorer road conditions, which can be a public safety issue.

Organizations that support continuing the tax include the Lincoln Chamber of Commerce, Lincoln Independent Business Association, Home Builders Association of Lincoln and the Realtors Association of Lincoln.

Arguments Against

Simply put, residents are already overtaxed, opponents argue. Few dispute the need to improve streets in Lincoln, but tax opponents say the city should find a way to pay for street repairs and improvements without the special sales tax, even if that means making some difficult funding decisions. Safe roads are a core responsibility of the government and should be prioritized above less essential services and amenities, opponents argue.

They note that Lincoln residents already pay a wheel tax, a $74 fee when they register their car each year, that is earmarked for roads. The state gas tax also goes to road and bridge maintenance.

There does not appear to be a formal opposition campaign fighting the measure. Some residents spoke against it during a City Council hearing, and three candidates for City Council — Rene Carrillo, Maghie Miller-Jenkins and Elina Newman — have said they oppose the measure.