Where is the property tax relief from Nebraska casinos?

LINCOLN, Neb. (KLKN) – After voting to legalize casinos in 2020, many Nebraskans are wondering why they haven’t seen property tax relief yet.

“Yeah, this is what has me confused,” Melanie said on the Now Local News App. “We were told if we approve the casinos, it would help with property taxes. I haven’t seen evidence of it. Does the state have any numbers?”

The Nebraska Legislature expected that in fiscal year 2022-23, casinos would bring in about $34 million for property tax relief.

But in reality, the casinos fell far short, only generating $8 million.

That amount increased to $14 million in the fiscal year that ended June 30 — still below projections.

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Lynne McNally, the CEO of the Nebraska Horsemen’s Benevolent and Protective Association, said there are two main reasons why your property taxes haven’t dropped.

First, construction has been slow. Second, valuations are still going up.

“Despite the fact that the initiative was passed four years ago, you still only have one of the six locations that are fully up and running,” she said.

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The casino in Columbus is complete, but construction on the Lincoln WarHorse Casino has been ongoing for years now.

McNally said all of the casino locations are facing a barrier.

“Interest rates skyrocketed just about the same time the initiative passed, so things are going much slower than any of us had anticipated,” she said.

Once all of the casinos are complete, McNally said they will generate about $120 million in tax relief per year.

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Meanwhile, property valuations have “increased dramatically,” McNally said.

“So any savings that you would have had in property taxes was eaten up by the increased valuations,” she said.

McNally said everyone, from school districts to city governments, needs to be on board with lowering taxes.

“It’s a multi-faceted issue, and it’s going to take all of the parties working together to really get meaningful property tax relief,” she said.

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