Nebraska Senator Accuses Lincoln of Taxing Extraterritorial Residents

Lincoln & Hastings Kearney, NE, October 7, 2026 —

State Senator Beau Ballard has accused the City of Lincoln, Nebraska, of collecting city sales and occupation taxes from residents who live within its extraterritorial jurisdiction (ETJ). These areas are distinct from the city limits, and residents within them do not have the right to vote in Lincoln city elections.

The claims have reportedly garnered support from Nebraska Attorney General Mike Hilgers, who has voiced his endorsement of the senator’s position on the matter.

In response to the accusations, the City of Lincoln has issued a statement addressing the administration of sales taxes. The city’s official stance is that the collection and administration of sales taxes are handled by the Nebraska Department of Revenue. According to the city’s response, the City of Lincoln itself does not directly administer these taxes.

The specifics regarding occupation taxes and their administration, or further details on the scope and timeline of the alleged tax collection from ETJ residents, were not provided in the initial summary of the trend. The extent of the financial impact on these residents, if any, remains unclear. Information regarding any formal complaints filed or potential legal actions also has not been detailed.

The situation highlights a potential area of dispute concerning taxation authority and residency for individuals living in areas adjacent to, but outside of, municipal boundaries. The categorization of ETJ residents and their tax obligations is central to the ongoing discussion between the state senator, the Attorney General, and the City of Lincoln.

Story summarized from the original created by Noelle Adams on www.klkntv.com, see more information here.