Nebraska senators advance $200 million property tax relief proposal

LINCOLN, Neb. (KLKN) — Senators voted Monday to advance a key piece of what the Pillen administration has called the largest package of tax cuts in state history.

Legislative Bill 243 would gradually increase the amount of state property tax credits given to landowners between now and 2029 by well over $200 million.

The measure also includes a 3% limit on the total revenue growth of school district spending.

There would be exceptions in districts that are seeing rapid growth, and exceeding the cap could also go to a vote.

“And why do we want to remove that cap?” Sen. Tom Briese asked. “To provide a little extra tax relief for everyday Nebraskans. It’s also built to protect Nebraska taxpayers.”

Some senators worried that advancing the package as is could negatively impact education. 

“I do worry a little bit about how these measures together may impact school’s ability to meet the need of their communities,” Sen. Danielle Conrad said. 

The OpenSky Policy Institute is concerned that funding for local schools could be in jeopardy down the line.

“With the state on sound financial footing, there is an opportunity to invest in improving student outcomes and assisting schools dealing with inflation and staffing issues,” its analysis says. “But with the 3% revenue cap, whatever the state provides in additional foundation aid and funding for special education programs is simply a shift from local funding that’s already in place.”

But lawmakers voted 41-1 to advance it to the second round of debate.