Legislative News

State Sen. Steve Erdman says the revisions are a ‘plain and simple retroactive property tax increase’; State Sen. Brad von Gillern says there will be ‘no net difference to the taxpayer.’

The Nebraska Department of Revenue (DOR) is providing information on property tax relief changes resulting from a new credit through the passage of LB 34 (2024).

Nebraskans who have claimed a state income tax credit for property taxes paid in support of their area community college should continue to do so in the coming year.

Over the span of the last four months, Nebraska Gov. Jim Pillen lobbied energetically for significant property tax relief, with a stated goal of attaining 40% total property tax relief by the end of his second year in office. But when the Legislature completed its special session on Aug. 20, the result was an expanded and revamped program providing only about 3% to 4% more property tax relief, with total relief roughly around 20%, according to Pillen.

Lawmakers embraced the ‘absolute minimum’ LB 34 and said farewell to the class of senators elected in 2016, who led the charge to continue working.

What was intended to be a simple, rare Saturday meeting of the Nebraska Legislature began with flared emotions but ended with key senators making nice to save the very legislation their fight had imperiled.

The Nebraska Legislature started last week with LB34, introduced by Sen. Tom Brewer of Gordon, as the new vehicle for Gov. Jim Pillen's property tax relief plan. The bill was advanced from the Revenue Committee on a 6-1 vote with a committee amendment that contained the major portions of LB1, including new taxes and the elimination of certain exemptions for more than 60 products and services. (The provisions to tax accounting services and tax preparation services were removed before the bill even made it out of committee.) Ultimately, the amendment did not have enough votes to advance and they substituted that amendment with AM84, which significantly pared down the bill and ultimately advanced.

Two budget-related legislative bills advanced Friday to help offset the cost of Nebraska’s latest core property tax relief plan.

The “absolute minimum” property tax relief plan in the Nebraska Legislature inched closer to passage with small changes Friday, as lawmakers swatted down a proposed “compromise” for counties and municipalities.

Governor Jim Pillen issued the following statement regarding efforts by some senators to water down the local government spending caps in the property tax relief package currently moving through the Legislatuure.

Gov. Pillen has a new property tax relief plan using LB 9, which was introduced by Sen. Jana Hughes of Seward. Although the proposal still includes the taxation of more than 70 goods and services, it does NOT include the taxation of accounting and legal services, advertising, and cloud or data services. Several property tax relief bills are expected to be combined into LB 9 this afternoon.

An Omaha lawmaker is taking an alternative route to provide Nebraskans property tax relief by seeking to decrease the state’s prison population and offer second chances.

City and business leaders in Nebraska say their most powerful tool to spur economic development could be in jeopardy, depending on the property tax relief plan state officials settle on in the special legislative session.

Sen. Linehan says funding for “the ‘needs’ side, though it might need some adjustments, is better than saying, ‘we’ll figure it out later.’”

Dozens of statewide business, municipal and county leaders lined up Tuesday to testify against Nebraska Gov. Jim Pillen’s core property tax proposal. For more than 10 hours, the Legislature’s Revenue Committee listened to varying perspectives about Legislative Bill 1, which Pillen says would reduce the average Nebraskan’s property tax bill by up to 50%. State Sen. Lou Ann Linehan of Elkhorn, the committee chair, introduced the bill on Pillen’s behalf and presided over the committee hearing.

State Sen. Danielle Conrad of Lincoln filed a campaign finance complaint against Gov. Jim Pillen on Tuesday, claiming that the first-term governor has misused taxpayer funds to promote his political campaign and his plans to reduce property taxes and slash state spending.

In the midst of numerous proposals facing the Legislature to offer relief to property owners, a measure aimed at carving out help for a different demographic, renters, garnered backing Monday from a dozen supporters. Two of them testified during a public hearing before the Revenue Committee, and 10 others submitted written comments. No one spoke in opposition, but three issued objections in writing.

As introduced, Gov. Jim Pillen’s core property tax relief proposal could fall short by $139 million in annual estimated revenue needed.

Three legislative bills introduced Monday would extend significant property tax relief to Nebraska homeowners based on how long they have owned a home in the state. Legislative Bill 75, from State Sen. Mike McDonnell of Omaha, would exempt qualified Nebraska homeowners from paying any property taxes after 40 years of ownership in the state.

Some lawmakers sent a warning to Nebraska Gov. Jim Pillen on Friday by voting to send the core of his property tax relief proposal to a more unfavorable committee than anticipated.

An alternative tax relief measure to be considered by state lawmakers would exempt from property taxes the first $100,000 of a Nebraskan’s home value.

Spurred by legitimate discontent over rising property tax burdens, Gov. Jim Pillen (R) is searching for bold solutions. But the plan, which reportedly involves a two-tiered sales tax and the state’s assumption of most school funding responsibility, would have profound implications that even those most convinced of the urgency of property tax relief may find unworkable and unpalatable.

Whatever ability Gov. Jim Pillen has — or lacks — to persuade state senators on property taxes, he’s at least clarifying the choices Nebraskans face. This is an interesting editorial published in The North Platte Telegraph.

Eleven lawmakers will host two listening sessions on property taxes in the state’s two most populous cities after Nebraska Gov. Jim Pillen opted out of doing so. Pillen, in his quest to reform property taxes, crisscrossed the state, visiting 26 cities in May and June for town halls to pitch his evolving reform plans. He asked Nebraskans to offer feedback and to pressure state senators to support his ideas, although senators later said they received little feedback.

Governor says the state needs immediate action for ‘a crisis that has been accelerating at warp speed’; opponent says a ‘third grader’ could see working Nebraskans will pay more.

In every state, revenue from property taxes is one of the biggest sources of K-12 school funding. But that could change soon as efforts ramp up in a handful of states to abandon property taxes altogether, or at least as a funding source for schools.

Some Nebraska lawmakers working with Gov. Jim Pillen on property tax reforms this summer said Monday if lawmakers do move to take over most K-12 school funding, it would be a multiyear process.

Nebraska Gov. Jim Pillen is facing pushback for some of his property tax reform ideas from some of his closest agricultural allies in the Legislature. He may need their support to pass reforms during a special session expected this month.

Organizers said they did not collect the required number of registered voter signatures for the 2024 ballot.

The funding route for Gov. Jim Pillen’s property tax reforms ideas will likely continue to focus on sales and “sin” taxes, and he says that “income tax won’t be touched.”

Gov. Jim Pillen is asking the State of Nebraska to take on most or all public K-12 school spending, instead of funding schools through local property taxes. The shift would be a national standout.

Nebraska Gov. Jim Pillen offered one of the clearest timelines yet Monday for when he might call a special session on property tax relief this summer. “To any state senator reading this — clear your schedule from July 26 to August 15,” Pillen wrote in his latest column. “We have the people’s work to do.”

If Nebraska Gov. Jim Pillen calls lawmakers back for a property tax relief special session later this year, it could be among the costliest in state history. Pillen, in his second year as governor, has remained firm in vowing to “call as many special sessions as it takes” in his pursuit of reducing local property taxes by 40% before year's end, or about $2 billion of what is collected annually. Initial cost estimates could push per-day costs to about twice what the last special session cost in 2021, for redistricting.

To remain competitive, Gov. Jim Pillen is right to target property tax relief, says Jim Vokal of the Platte Institute. However, the immediate path should be one of foundational reform, bringing fiscal discipline and transparency to local governments, rather than fueling their spending with state funds.

Before embarking on a restructuring of Nebraska’s tax system, it’s important to set goals and map out the path to our ideal destination, says Jim Vokal of the Platte Institute.

Gov. Jim Pillen's much-amended plan to raise sales taxes to decrease local property taxes went down in flames Thursday, the final day of the 2024 state legislative session. It was a stunning defeat for the idea of raising some taxes to reduce others, and it almost assuredly guarantees that state lawmakers will be back this summer in a special session on taxes.

Gov. Jim Pillen's scaled-back plan to reduce Nebraskans' property taxes failed to clear the final hurdle in the Legislature on Thursday, the final day of this year's legislative session, sinking Pillen's priority legislation and likely ensuring lawmakers will return to Lincoln for a special session yet this year.

Nebraska lawmakers further slimmed down a property tax relief plan sought by Gov. Jim Pillen before advancing it to final reading Wednesday evening. The 28-14 passage of Legislative Bill 388 came after a long debate over the idea of raising some taxes to reduce others, namely property taxes, and whether a portion of the bill was unconstitutional.

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.