The Cornhusker State may have cause to celebrate since Gov. Jim Pillen approved a bill for property tax relief. The proposal came from a special legislative session in response to state lawmakers’ outcry against the governor’s original property tax plan.
Gov. Pillen said before the session, “We need state senators to enter the upcoming special session with the determination to fix this issue immediately.”
While a bill has been approved, the path was not smooth sailing. All kinds of proposals came out of the special session as senators sought unique ways to fund tax relief. As Kiplinger reported, among the ideas that came out were proposals involving marijuana and ammo taxes.
However, Pillen’s Legislative Bill 34 (LB34) could be just the start of property tax relief in the state. Here’s what else you need to know.
NE property tax special session bill
After days of cycling through various tax packages, Legislative Bill 34 (LB34) was approved, and here are the highlights:
- The increase in sales taxes was not approved
- Spending caps on local government stayed (public safety and emergencies excluded)
- Investment in property tax credits was approved
- Revenue growth over 3% is directed toward property tax relief
Most of the bill will go into effect in October.
The revised plan suggested a $750 million investment into the School District Property Relief Credit Fund to kickstart property tax relief.
Nebraska homeowners can expect property tax credits to be automatically applied to their tax bill, making claiming the credit easier. But the relief will not be as much as Gov. Pillen's original bill contemplated.
Further Nebraska property tax relief?
Since the bill didn’t provide as dramatic a reduction of property taxes as originally intended, the signing of LB34 came with mixed feelings. (The 3% reduction was seen by some as not being enough.)
State Sen. Lou Ann Linehan took to the mic in a press conference. “What we got done this week may be disappointing, yes, however, here’s the really big things that happened," Linehan said, adding, “The 40%-45% of the people that weren’t claiming their credit are now gonna get it on their property tax statement.”
Pillen followed up by stating there wouldn’t be additional special property tax legislative sessions this year, but there would be new proposals for property tax relief in the next year.
NE property taxes and the November election
While the special session may be over, bills from the session could go to the state ballot box in November in some form or other.
Nebraska’s marijuana bill is a good example. The Nebraskans for Medical Marijuana, a registered ballot committee, has garnered signatures for their spot on the ballot. Other items — like ammo excise tax and a proposal to legalize online gambling — weren’t acted on during the special session, but that doesn't mean they're down and out.
So, all Nebraskans are encouraged to vote. There may be much to think about this year at the ballot box.
