State Capitol News . . . Income-Sales Tax Gets Axe LINCOLN — One of the cli matic occasions of the session came when the legislature by a decisive 28-12 margin voted down a proposed sales and income tax, LB 510. This was the first time the in come tax idea had ever been in troduced. It had to be coupled with a sales tax to provide enough revenue to replace the • property taxes now required for state government. Many had thought that the property tax troubles of the past two years would make this the best year ever for a sales tax attempt. But the principal of “broadening the tax base” got an even worse whopping than two years ago when the margin was 22-16. Sen. Dwight Burney of Har tington, perenniel sales tax advo cate, said sadly that apparently the people of Nebraska hadn’t felt the pinch of property taxes enough yet. Burney also indicated he was going to quit the legisla ture at the end of this term—his sixth. Interestingly enough, most of the votes for the sales-income tax bill came from senators from western Nebraska, which felt hardest the increased taxes on real estate that came from the 1953 statewide equalization ef fort. It took the legislature about three hours to debate the issue. Senator Burney said that the property owner is a “sitting duck” for all the taxes in Nebraska. He said that taxes are going to be come greater instead of smaller and that the tax burden should be shared by all the taxpayers in stead of just those who own pro perty. But speaker after speaker rose to lambast the idea of “broaden ing the tax base,” arguing the sales tax would hit the poor man and that the income tax would frighten away industry. • • * Tax Reform— A seven-part program of tax reform rolled along smoother than its exponents had dared hope. At week’s end five of seven bills had been passed and signed into law by the governor. The other two were on their way to final passage. The “keystone” bill of the pro gram, the socalled “basic value” measure, passed by a wide mar gin of 36-3. It would allow asses . sors to use a number of factors in valuing property instead of the present rigid single factor of “current sales price.” Also given approval were LB 149, setting up an annual inven tory system of assessment for merchants, farmers, and manu facturers; LB 154, calling for a popular vote on a constitutional amendment to change the method of taxing grain; and LB 152, al lowing the state tax commission er to set up standards for county assessors to follow. Senator Bixler, 40-year-old le gislator from the northwestern corner of the state, proved to be just about the busiest—and luck iest—man last week. The educational committee killed the last of four bills he had proposed to change the sys tem of leasing school lands, most of them located in western Ne braska. Yet Bixler was able to get the bill on the floor by getting a 22 vote majority. Major argument in his favor was that amendments have been offered to set up a “unit valuation” system of rent. It would take into account the current prices of cattle, corn, or wheat grown on the school leases. The Bixler amendments would try out this system for leases be ing renewed during the next two years. me Harrison legislator was al so able to get the legislature to ! give initial approval to appropri ating $130,000 to turn old Ft. Ro binson in his comer of the state into a first-class tourist attraction. Bixler explained that Ft. Robin son is “rich in history” from the days it was the center of army activity against the Indians in the perilous 1870 to 1890 period. Giving him backing were mem bers of the banking committee who had taken a special trip to the old fort to see for themselves. They said they came away con vinced that it could be made into a park that would attract tourists from all over the nation. The legislature by a 25-13 vote abolished the two-year-old turn pike authority. Major argument was that the law establishing the authority gave too many broad powers. Filling station and motel owners had worked particularly hard to scuttle the authority, which had been able to do little until states to the east started toll road construction. « • • 'Whole Cloth’?— The Nebraska unicameral le gislature last week was digesting the contents of a comprehensive program of providing enough re venue for the highways, suggest ed by the revenue committee. This came as most of the com mittees finished their work and the legislature settled down for the last lap of its grind, expected to last about another month more. In one of the neatest pieces of committee work seen in a long time, the revenue committee took a swatch of this bill, tacked it on to a section of that bill, stitched a new idea or two and came up with a complete “garment”. The truckers, who would be hit hardest by the proposed legisla lion, immediately complained that the “garment was fabricated out of whole cloth”. But the fact that Sen. Lester Anderson of Aurora, a foe of the truckers, didn’t much like it either gave some indication that the program was a good compromise between the two extremes. Here is what the committee proposed: 1. To increase fees on all com mercial trucks, ranging from $2.50 more on half-ton trucks to $10 a ton more on trucks carry ing over seven tons. 2. To hike fees on all farm trucks, from $2.50 on the half and three-quarter ton vehicles to $5 for those carrying a ton or more. 3. A ton-mile tax on all non Nebraska trucks carrying 16 tons or more. This tax would amount to 5 cents a mile. This was a far cry from Anderson’s original ton mile tax proposal to apply to all trucks and that’s why the Aurora senator complained his bill, LB 362, had been “sabatoged”. * * * For State, Cities— Earlier a proposal to charge $8 on all automobiles had been made. This amounts to raising the lighter weight vehicles from their present $6 fee. All these proposals are expect ed to bring in about $2 to $2.5 million. Exclusive of the ton-mile tax (and no one knows exactly what revenues would be) the take would be about $1.9 million. Matched with federal funds, this “new money”, from $1.3 to $1.6 million, should go to the state highway department. The only exception was that about $650, 000 of it would be earmarked for the cities and villiages. The highway department’s share would be used for match ing federal funds on the pro posed interstate defense route to be built from Omaha across the state to the Wyoming bor der west of Kimball. Just where the funds for this super highway were to come from has been unclear. Left out in the cold would be the county roads. Revenue com mittee members told reporters that the counties too often have not done a good job with their funds, they haven’t matched them with federal funds to give the taxpayer the most for his money, and too many county boards have used the money for expensive equipmment instead of for the roads themselves. The committee determined that the license fee split would be al tered so that all the new money would go to state or cities. The state highway department gets only 30 percent. To the counties, which may complain of this, revenue com mittee members this week were reminding that LB 15, passed earlier in the session, took county road money away from the most populous counties and scattered it around the rest of the state. Also, it was being pointed out that in no other state of the union do the counties get such a large share of the highway revenues. * * ft County Requirement— One of the most significant proposals in the revenue commit tee’s “package” was a require ment that the counties must match with federal money at least 20 percent of their share of the gasoline tax money. Other wise, this money would revert to the state highway department. Oddly enough, although the counties can get $1 in federal money for every $1 they furnish, only about half the counties have taken advantage of this at all. About 35 have never even sched uled one project on this basis. The proposal sounded a little like sticking a gun in a man’s back to make him take a pay check coming to him. But of ficials estimated it would do as much for the roads of the state as would enacting another half-cent of tax on gasoline. Leaders in working out this “package” were four members of the revenue committee who have been dubbed “the young Turks”. Royal Theater — O'NEILL, NEBR. — Thursday May 12 Family Night REAP THE WILD WIND Color by technicolor. Starrring John Wayne, Susan Hayward, Paulette Goddard. Family admitted for 2 adult tickets—Adults 50c; Children 12c Fri.-Sat. May 13-14 WHITE FEATHER Starring Robert Wagner, John Lund, Debra Paget. Jeffrey Hun ter. The lodges of the Sioux, the Arauaho, the Cheyenne, the Paw nee and the Blackfeet spanned the Great Wyoming plain ... It was the final climatic meeting of the two worlds! ... a time for decision and dying. Adults 50c; Children 12c; Matinee Saturday 2:30. AU children under 12 free when accompanied by parent. Sun.-Mon.-Tues. May 15-16-17 Grace Kelly, Academy Award Winner, with Bing Crosby and William Holden in THE COUNTRY GIRL AU through the year it wiU be talked about ... all through the years it will be remembered. Adults 50c; Children 12c; Matinee Sun. 2:30. All children must have tickets Wed.-Thurs. May 18-19 Family Nights SIGN OF THE PAGAN The story of Attila the Hun, in Cinemascope, color by tech nicolor, Starring Jeff Chandler, Jack Parlance. LudmiUa Tchrer ina, Rita Gam with Jeff Morrow, George Dolenz, Edward Franz, Alexander Scourby. Family admitted for 2 adult tic . kets—Adults 50c; Children 12c These men— Sens. Monroe Bixler , of Harrison, William Metzger of Cedar Creek, Joseph Martin of Grand Island, and Donald Mc Ginley of Ogallala — were joined by Sen. Earl Lee of Fremont a veteran legislator, in working out the actual details. A day later the entire committee followed suit. A key to the whole package was that it put out on the floor of the legislature the ton-mile tax bill, LB 362, the license fee in crease bill, LB 519, and a seventh cent of gas tax, LB 436. These in their original form could act as a *club over the heads of groups op posing the amended bills. In other words, the truckers and petroleum people may be in the position of having to choose the lesser of two evils. * * • Conservation Crackdown— The state board of education lands and funds gave indications that it means business on proper upkeep of the state’s school lands. This is the new board appointed by Gov. Victor Anderson after the voters amended the constitu tion last November to bring a change from the previous board of elective officials. The board called three land leaseholders on the carpet for al leged poor conservation practices which would have allowed their land to blow away. L. Verne Halcomb, Kimball at torney, was “severly reprimand ed” by the board for “entirely in sufficient soil conservation prac tices.” His lease was not cancel led, however. Halcomb has coun tered this “bad publicity” with a request for cancellation of his lease. Action was also deferred on a Dundy county lease held by Mrs. Eunice Knepper. Hearing on pos sible cancellation of the Pierce county lease of Adolph Polinske will be held later this month. • * • Recreation Areas— The legislature gave signs of changing policy on financial sup port of the state’s recreation areas. At present these are finan ced with the income from fishing and hunting license fees. These fees also go to the sup port and propogation of fish and wildlife. So often not too much is left for the 53 recreation areas. Residents of Ayr became dis gusted at the upkeep of Crystal lake recreation ground south of Hastings. They had their senator, Mrs. Kathleen Foote of Axtel, introduce a bill to sell the area, a method to arouse interest in its rundown condition. The legislator took notice to the tune of voting $16,000 from the property tax-supported state gen eral fund. Game commission of ficials and senators said this was a major departure from past practice and indicated that the state may change the policy en tirely. * • * Control Board— On the other hand, the legisla ture refused to tamper with the state board of control system. Killed by a 21-19 vote was a con stitutional amendment proposed for a popular vote in the 1956 general election on changing the system. The board of control op erates 17 state mental, penal, and educational institutions, and su pervises the entire state welfare program. Sen. George Syas of Omaha said the work was too much for the three-member board. But Sen. Ernest Hubka of Beatrice said there was no evidence of “inef ficiency or incopentency.” • * * Flagman Bill Out— The judiriary committee, after verting three to kill and three to keep alive Sen. Frank Nelson’s bill to eliminate the flagman on abbreviated passenger trains, in early morning special session fin ally sent tht- bill to the floor with a thumping 7-1 margin. On the first ballot, which fol lowed a hearing in which the Save-the-Trains association of ficials and the railroad brother hood representatives locked, three of the committee failed to vote. The brotherhood finally agreed to an amendment and the bill was pushed onto the floor. Sena tor Nelson had introduced LB 554 as emergency legislation at the behest of train-savers. — Departs for Gretna— Mrs. Helen Brown of Gretna visited over the weekend at the home of her son-in-law and daughter, Mr. and Mrs. Louis Reimer, jr., and Jimmy. Mrs. Morris returned to Gretna with her daughter. She had spent the winter at the Reimer home. _ O’Neill News Mr. and Mrs. Fred Appleby and family and Mr. and Mrs. Rob ert Asher and family were din ner guests at the home of Mr. and Mrs. Donald Nissen. Mr. and Mrs. Francis Belzer entertained at a family dinner Sunday. Guests were Mr. and Mrs. Wayne Fox and family of Emmet, Mr. and Mrs. Gilbert Fox and Barbara of Emmet, Mr. and Mrs. Charles Fox, jr., Mr. and Mrs. George Bosn and family, Mr. and Mrs. William Kelly, Mr. and Mrs. Charles Fox, sr., and family and Miss Kathy Rubeck. The dinner honored Mrs. Charles Fox, sr. Mr. and Mrs. Charles Chace and family were Sunday after noon guests at the home of her parents, Mr. and Mrs. H. J. Ham mond. Mr. and Mrs. John Pray of Ft. Dodge, la., arrived Saturday to spend several days at the home of their son-in-law and daughter, Mr. and Mrs. J. B. Grady. Mrs. Ira Moss returned Satur day from Sioux City where she ' had visited for several days with her husband who is a patient at St. Joseph’s hospital. o I I Outlaw Impl. WEST O’NEILL 0 *■ * ONE OF AMERICA’S FINEST MILE TRACKS! — * : ’ TAKES THE LEAD... 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