LINCOLN – Residential electricity could be a rare example of a service being exempted from taxes, as more than 70 goods and services are on the verge of losing their tax exemptions to make way for Nebraska’s property tax relief.

Parliament’s Finance Committee considered on Wednesday an amendment to Bill 9 the purchase and sale of Electricity for private households of sales or use taxes. Committee members said the intent is to eliminate the state tax of 5.5 cents on the dollar, but not the local tax rate — up to 2 cents in select cities or villages.

The committee’s chairwoman, State Senator Lou Ann Linehan of Elkhorn, said recent storms across the state have shown how important electricity is.

In eastern Nebraska 221,314 Customers of the Omaha Public Power District were without power after the storm on July 31, the utility reported. More than 2,600 were still without electricity As of Wednesday afternoon.

“Electricity is definitely a necessity in today’s world,” Linehan said. “This would also provide a source of tax relief for homeowners and renters alike.”

The Nebraska Department of Revenue estimates that exempting electricity could save taxpayers at least $62 million annually. Local sales taxes add up to another $18 million, plus $3 million allocated to two highway funds.

In the spring, lawmakers were close to Natural gas and propanein addition to electricity. These measures were part LB388a bill to reduce property taxes, which was rejected.

Testimony Wednesday largely leaned toward those calling for a broader exemption for propane and natural gas, although they took different approaches in how they formally declared their support or opposition.

Chris Dibbern, the Nebraska Public Service Commission’s public advocate for natural gas consumers, expressed support for the concept and urged lawmakers to add three words: “and natural gas.”

“On behalf of the taxpayers, thank you for taking care of saving every household in this state with this package,” Dibbern said.

Jill Becker, a lobbyist for Black Hills Energy, opposed the bill, saying it would create “winners and losers” and ignore consumers’ right to choose their energy source.

“There is no political reason to differentiate between electricity and natural gas customers,” Becker said. “I respectfully ask you to either include natural gas customers in private households … or not to propose the amendment at all.”

Lynne McNally, executive director of the Nebraska Propane Gas Association, testified in a neutral capacity but urged lawmakers to consider that more homeowners in western Nebraska use propane for heating.

Rick Kubat, a registered lobbyist for the Metropolitan Utilities District, agreed that it is necessary and affordable for consumers to heat their homes “in bitter cold.”