Gov. Pillen vetoes bill that would redefine emergency workers due to property tax concerns

LINCOLN, Neb. (KLKN) — Governor Jim Pillen on Thursday sent a letter to the legislature, vetoing a bill due to rising property tax concerns.

According to Pillen, LB 1256 allows counties, cities and villages to exceed property tax caps by reclassifying snow and ice removal and flood management as emergency management workers under the Emergency Management Act.

“I do not believe that this Legislation was properly discussed in the context of increasing property taxes,” Pillen said in the letter.

In the letter, Pillen cited the Tax Growth Limitation Act, which was put into place during the 2024 special session. He said this was enacted to create limited exceptions that allow municipalities to spend above their property tax levy, one of which is spending in response to a declared emergency.

“By adding snow and ice removal and flood management to the list of exempted emergency spending, municipalities will be able to circumvent these property tax caps to recover unplanned expenses in the event of just a single snow or flood emergency,” he wrote.

Based on an assessment of political subdivisions impacted by snow emergencies in recent years, the Department of Revenue estimated the allowances would cost $40 million annually in additional property taxes, assuming a 2.5% increase in property taxes for snow emergencies.

“I cannot in good conscience sign LB 1256 into law, which will increase property taxes, while we are in the middle of a property tax crisis,” said Pillen.

At the end of the letter, Pillen urged the senators to sustain his veto. He also asked them to bring the bill back next year and discuss its tax implications.

On Thursday, Pillen also vetoed LB 839 because it “creates needless regulatory burdens on recipients of Affordable Housing Trust Fund grants by forcing multifamily housing developers to build an arbitrary percentage of accessible dwelling units for individuals with mobility, hearing, or vision impairments.”

He also vetoed LB 878, which would extend six weeks of paid maternity leave for all state employees.

You can read all three letters to the Legislature below: