Legislative News

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.

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.

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.