Backers of ‘consumption’ tax ballot initiative seek funds to finance paid circulators

LINCOLN — Backers of a novel state “consumption” tax predicted Monday that a ballot initiative to adopt it would pass if it gathers enough signatures to qualify for the 2024 ballot.

But getting it on the ballot is the big “if” faced by the so-called EPIC Option Consumption Tax initiative, though one political consultant figures they have commitments for campaign funding and will qualify for the ballot.

Such signature drives typically require more than $1 million in funds to finance paid circulators able to collect the required tens of thousands of valid signatures of registered voters.

So far this year, backers of the EPIC Option Consumption tax have reported raising just under $89,000 as of October.

“We need all kinds of funds,” said State Sen. Steve Erdman of Bayard, following a press conference on Monday.

In January, backers of the consumption tax — which would replace local property taxes and state sales, inheritance and income taxes — launched their signature drive amid criticism it was “too good to be true” and “dangerous.”

At the press conference Monday, backers said that so far, they had gathered sufficient signatures in at least three rural counties and suspect they have qualified in “several” others, but the petitions have not yet been turned in.

Erdman, who has made the consumption tax his top issue during seven years in the state Legislature, acknowledged that the EPIC tax group will likely have to raise more than $1 million to pay petition circulators to gather enough signatures to qualify for the ballot.

But the veteran senator also predicted that voters would approve the consumption tax, if it makes the ballot.

Nebraskans, Erdman said, are tired of seeing “property tax relief” bills pass that only reduce increases in the tax.

He predicted that they are ready to take a risk with a radically different tax system.

“We took a risk in 1937 and passed a (onehouse) Unicameral,” Erdman said. “If we don’t fix our broken tax system, we’re going to continue to lose people to other states.”

While the EPIC group has some work to do, Barry Rubin, a political consultant with experience in such petition drives, said the group likely has sufficient funding lined up because a “reputable,” signature-gathering organization like Trailblazing Canvassers would not sign a contract unless that was the case.

Rubin predicted hiring professional circulators, plus active work by volunteers will put the issue on the ballot, even though he opposes it.

“There are a lot of unknowns, and it’s an aggressive way to change our tax system,” he said.

In its most recent financial report to the Nebraska Accountability and Disclosure Commission, the EPIC Option group reported raising nearly $89,000 for its petition drive so far this year.