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New property tax and business incentive package advances

New property tax and business incentive package advances
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Lincoln, Neb. — Nebraska lawmakers will try once again to pass a major property tax and business incentive package as early as Wednesday, with time running out in this year’s session.

The Legislature’s Revenue Committee voted Tuesday in favor of a new proposal designed to benefit Nebraska property owners and attract businesses. The committee’s previous attempts to lower property taxes have stalled, and lawmakers have just five days remaining in this year’s session.

The new proposal seeks to combine the priorities of lawmakers who want to lower property taxes and those who want to continue offering tax incentives to businesses to replace a program that expires this year.

The Nebraska Farm Bureau says the property tax proposal would deliver substantial and meaningful relief.

According to the organization, if adopted, the amended bill would:
  • Establish a new “Nebraska Property Tax Refund Act” providing relief based on the amount of taxes paid to K-12 schools.
  • Provide $125 million in new property tax relief immediately, with relief guaranteed to grow to $375 million within six years, with adjustments for growth in statewide valuation.
  • Bolster the existing Property Tax Credit Fund by setting a minimum requirement of $275 million in relief per year, plus any new revenue generated from the gambling petition initiative if it passes on the ballot this November.
  • Reduce property taxes paid to schools by nearly 15% when fully implemented.

 

Not everyone is a fan of the compromise. The Open Sky Policy Institue called the bill expensive and concerning. The group says policymakers will likely be digging a fiscal hole that they may never climb out of.

Senators will debate the proposal on Wednesday.

 

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