Nebraska’s Legislative Bill 34, advancing to its final debate, aims to provide property tax relief with $185 million in new funds, a revamped $565 million in existing relief, and caps on tax increases, while avoiding new sales taxes and allowing local governments some flexibility through override options.
Nebraska Advances Property Tax Relief Plan with $185 Million Boost and Strict Tax Cap Limits
According to the Nebraska Examiner, Nebraska lawmakers are pushing forward with a property tax relief plan called Legislative Bill 34, after making a few small changes. The bill, which passed with a 39-8 vote to move on to its final debate, aims to add $185 million in new tax relief and update an existing $565 million in relief. This plan is designed to help middle- and low-income property owners by improving the current property tax credit system and increasing state investment by 3% based on last year’s property tax burden.
The bill also sets limits on how much local governments can raise their property taxes, capping it at the rate of inflation or 0%. Some lawmakers wanted higher caps to give local governments more flexibility, but Governor Jim Pillen has said he will veto any changes that weaken the bill. The final bill includes technical fixes allowing local governments to propose overrides for the tax caps during specific election periods.
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$185 Million Boost: Nebraska’s Property Tax Relief Plan Gets Final Debate – Capping Tax Increases at Inflation Rate (PHOTO: Kearney Hub)
Lawmakers Opt Against New Sales Taxes, Focus on Technical Adjustments for Property Tax Relief Plan
Although there were talks about adding new sales taxes, lawmakers decided not to go that route. Instead, they focused on technical adjustments and allowing for tax cap overrides. As the final debate nears, the main goal is to ensure the bill provides meaningful relief while addressing concerns from local governments. The final vote will decide how the property tax relief plan will look.
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