Legislative News

Sen. Linehan says replacement revenue is being sought, but she's not certain that LB 388 will return for debate this year.

Debate on Gov. Jim Pillen’s epic and controversial property tax relief plan began Wednesday, March 27, with advocates saying it will result in a net tax savings and opponents saying it's a tax shift that will hurt middle- and low-income families.

New draft of Pillen property tax plan wasn’t present when committee voted last week, a possible rule violation.

No New Taxes Nebraska, a coalition of more than 40 businesses and organizations, has developed a webpage to provide information on the proposed EPIC tax. EPIC tax is a proposed ballot initiative that would eliminate property and individual and corporate income taxes and implement a proposed statewide consumption tax of 7.5%. However, a recent study found that the plan could require a much higher rate of tax of 20% or more to sustainably fund the state’s government services. Additionally, the initiative will take local budget and spending control away from local political subdivisions and place it into the hands of the Nebraska Legislature.

The Nebraska Legislature's Revenue Committee started shaping two of the six bills Wednesday that leaders say will contain the group's broader tax-relief package. The committee spent much of the morning in an executive session combining tax credits, tax deductions and tax tweak proposals into Legislative Bills 937 and 1023.

he Appropriations Committee delivered a budget package to the Legislature on Thursday that would hold spending to a 3.1% increase and leave a record amount of state money unspent.

The suggestion by State Auditor Mike Foley that a licensed CPA firm in public practice would inherently lack independence or expertise is a misunderstanding of the profession and its regulatory framework.

A state legislative committee began working Tuesday to craft a proposal to reduce property taxes statewide by another $1 billion, as called for by Gov. Jim Pillen. The Revenue Committee didn't vote out any bill on the issue, but its chair, State Sen. Lou Ann Linehan, floated the idea of raising the state sales tax by 1-cent and using the $531 million generated to increase state aid to K-12 schools.

The EPIC Option drive has suspended its contract with a Florida company for paid signature-gathering and struggled to bring in donations in recent weeks, according to a drive organizer.

After decades of increased property taxes, Nebraskans deserve true tax reform, not a tax shift. In crafting a tax package this session, senators should focus on creating long-term fiscal solutions, not “solving” one problem by creating another, says John Gage.

Four straight days of gathering public input on Gov. Jim Pillen’s plan to use higher and broader sales taxes to lower property taxes made it clear there’s more work to be done.

The Revenue Committee heard testimony Feb. 1 on more than half a dozen proposals to broaden the state sales tax base in an effort to reduce local property tax collections.

Groups ranging from accountants to farmers, veterinarians to lawyers, owners of self-storage units and amusement game distributors, lined up to oppose attempts to remove long-running tax breaks for their industries.

Former South Dakota legislator sounds the alarm and urges Nebraska legislators to reject LB1354, a tax on digital advertising.

School, county and natural resources officials among those opposing a harder cap or freeze on local spending.

The debate pits golfers and broadcasters, who support the added evening sunshine of DST, against health experts who argue that our biological clocks and sleep patterns work best on standard time.

Lawyers, accountants, business groups and hunters not so keen on Pillen proposals.

Gov. Jim Pillen's plan to use excess cash reserves to "jump-start" his property tax relief proposal got a rough reception Tuesday during a state legislative hearing.

Instead of relying on tax shifts and promises of a quick fix, local property tax relief is best solved by the disciplined actions of locally elected officials under the informed and watchful eye of the local taxpayer and property owner, says former State Senator Jim Smith of the Platte Institute.

Lawmaker says the legislation focused on duplexes and ‘accessible dwelling units’ would help affordable housing crisis.

The Revenue Committee heard testimony Jan. 25 on a proposal intended to incentivize Nebraska businesses to invest in new equipment and technology.

The Revenue Committee heard testimony Jan. 25 on a proposal intended to incentivize Nebraska businesses to invest in new equipment and technology.

Nebraskans could claim a state income tax credit for certain expenses they incur when caring for a family member under a bill heard Jan. 25 by the Revenue Committee.

— Gov. Jim Pillen pitched his proposal for "transformative" property tax relief on Thursday, calling for a broader sales tax, a "hard cap" on local school spending and the elimination of tax breaks won "by the best lobbyist." "We must lower our overall tax burden, widen our tax base, and end the era of special interest tax breaks," the first-term Republican said in his "State of the State" address.

Sen. Linehan proposes 1-cent increase, but hopes it will be less; other bills would hike taxes on cigarettes, vaping products, and remove exemptions

He voices support for broadening the sales tax base but would not say which sales tax exemptions should be eliminated.

The future of the filibuster, a tactic used to stall or kill bills, will be discussed at a public hearing scheduled for Monday on a variety of proposed legislative rules changes. Several state senators, including Speaker John Arch and State Sen. Steve Erdman of Bayard, who chairs the Legislature's Rules Committee, praised the proposals for offering a range of choices from minor tweaks to wholesale changes.

Wednesday marks the start of the 2024 session of the Nebraska Legislature, a 60-day session that several lawmakers said they hope is less acrimonious than last year’s filibuster-fest. Here are some things to watch in the session, based on discussions with senators and lobbyists.

Gov. Jim Pillen, in his quest to reduce local property taxes, has loaded up a self-described “bold and courageous” proposal to decrease property taxes via an increase in state sales taxes.

State senators ended a tumultuous 2023 session Thursday, giving a final OK to bills concerning voter identification, tax breaks for economic development and criminal justice reform. The 90-day session ended two days early and will be remembered for historic tax cuts, hard feelings aired during floor debate, and an almost session-long string of filibusters mounted in protest of a bill that banned gender-affirming procedures for minors. State Sen. Tom Briese of Albion, a key player in the legislation that delivered income tax cuts and property tax relief,summed it up best: It was a "momentous session" for what got done and for how hard it was to get those things done.

Nebraska and Iowa enacted Pass-Through Entity Tax (PTET) legislation during the 2023 legislative sessions, joining 33 other states that allow PTET.

State lawmakers largely stuck with Gov. Jim Pillen on Wednesday, approving only one override of his budget vetoes — an additional $1.2 million for the State Auditor's Office. State Auditor Mike Foley had asked for additional funding, arguing that he was losing auditors to other state agencies because they could offer $20,000 to $30,000 more a year in pay due to 22% pay raises for state employees effective July 1 — raises not granted to auditor personnel.

In a letter written to the Lincoln Journal Star, NE Chamber President Bryan Slone, the Platte Institute and the National Taxpayers Union Foundation discuss what makes Nebraska uncompetitive for remote workers – our tax code.

Using "tax day" as a backdrop, Gov. Jim Pillen joined some key state senators and two tax groups Tuesday in touting legislative proposals that aim to reduce Nebraska's top income tax rate to 3.99% by 2027. Tuesday was the deadline to file state and federal income tax returns, and the governor and others maintained that the state needs to be more competitive when it comes to taxes. "It's really important that we have a tax policy that gets us in the game," Pillen said.

Churchill once said, “Democracy is the worst form of government, except for all the others.” It’s surely messy and sometimes maddening. But democracy is self-correcting, so more of it truly is the solution. - George Ayoub

63 days into the 108th session, the Nebraska Legislature passed its first bill – LB376E – and forwarded it to the Governor for signature. The bill creates a brand registration for the Nebraska Liquor Control Commission, allowing the Commission to better identify alcoholic products being imported into or produced in the Cornhusker state.

While many voters might not care about how much tax corporations are asked to pay, they do care about the opportunities these employers provide in their communities, so a state’s tax policies have to be aligned with the goal of landing corporate relocations and expansions. Nebraska currently has the 18th highest corporate income tax among all states. It used to be even higher.

The newly launched Nebraska Chamber Foundation Workforce & Economic Dashboard offers insights into Nebraska's economy.

The Nebraska Revenue Committee recently heard LB1264, a bill to modernize Nebraska’s tax structure by reducing income tax rates, repealing the inheritance tax, expanding the sales tax base, and eliminating most incentives. Here's what the Tax Foundation has to say about the bill.