Nebraska state senators pass property tax relief bill as special session ends
LINCOLN, Neb. (KLKN) – Nebraska state senators voted 40-3 Tuesday morning to pass a property tax relief bill.
Three legislators were present not voting.
Legislative Bill 34 then went to Gov. Jim Pillen, who signed it.
The bill establishes the School District Property Tax Relief Credit Fund to provide relief from school district tax levies.
Under the bill, $750 million will be transferred from the general fund to the tax credit fund this fiscal year. The amount will increase in 2025 to $780 million and will continue increasing incrementally through 2030.
“I know people don’t think LB 34 is enough; I don’t think it’s enough,” Sen. Lou Ann Linehan of Elkhorn said. “We brought bigger things; it got whittled down. Then we brought something else; it got whittled down. … We need to get LB 34 across the finish line.”
The bill also puts credits for property taxes paid on your property tax statement, so you don’t have to wait until you file your income taxes to claim them.
Local governments will also be limited in how much property taxes they can collect. Annual increases in property tax collections would be capped at the inflation rate.
Sen. Barry DeKay of Niobrara said he is frustrated lawmakers have waited until the 11th hour to pass property tax relief.
“We had a chance to do this for the last two to three years,” he said. “We talked about it, and now we’re waiting until today to make a difference. If we get that difference made, that’s great. If we don’t, these conversations are going to persist going forward, and we’re going to deal with it.”
Sen. Justin Wayne of Omaha introduced an amendment to tax stores. He said it’s not fair to tax Grandma the same as Target.
The special session has adjourned.