Omaha Reveals Details of Tobacco Tax

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The city of Omaha has gone public with the proposed ordinance for a tobacco tax to help fund the new UNMC Cancer Complex. The entire plan is now available online. Click below to read the interlocal agreement between Omaha and the Board of Regents to partially fund the cancer complex.

The ordinance has been submitted by five council members which suggests it will have no problem getting approval. Tom Mulligan, Garry Gernandt, Chris Jerram, Pete Festersen and Ben Gray requested the proposal. The ordinance is modeled after the occupation tax aimed at restaurants, bars and caterers in Omaha. This one targets "persons engaged in selling tobacco products within Omaha." The city is estimating the 7% tax will bring in $3.5-million annually.

The plan is to funnel a decade worth of income -- $35-million -- to go towards the $370-million UNMC Cancer Complex. Earlier this week, Douglas County agreed to contribute a total of $5-million to the project -- $500,000 each year for a decade -- from inheritance tax collections. The state of Nebraska has agreed to provide $50-million. A public hearing on the Omaha occupation tax will be Tuesday, September 25, at city hall.