The Nebraska Legislature’s Revenue Committee has advanced a property tax relief plan that lowers school tax rates, limits local tax increases, and funds the changes through new sales taxes and fees, with a debate scheduled to begin on Tuesday.
Nebraska’s Legislative Bill 34 to Reform Property Taxes: Lower School Rates and New Funding Measures to Be Debated Tuesday
According to the Nebraska Examiner, the Nebraska Legislature’s Revenue Committee has moved forward with a major property tax relief plan, called Legislative Bill 34. This plan, which will be debated on Tuesday, aims to change how property taxes are handled. It would lower the maximum property tax rates for schools, shift some funding responsibilities to the state, and put limits on how many counties and cities can increase property taxes each year. To pay for these changes, the plan proposes removing sales tax exemptions from about 70 items and services, raising taxes on certain “sin” products, and adding a 50-cent fee on deliveries that include taxable items.
The bill also plans to cut the maximum school tax rate from $1.05 to 30 cents per $100 of property value over the next two years. It will also increase state control over local sales tax revenue, capturing a larger share to help with property tax relief. These changes aim to balance out the loss of revenue from repealed sales tax exemptions and other adjustments.
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70 Sales Tax Exemptions, 50-Cent Delivery Fee: Nebraska’s $1.05 Billion Property Tax Relief Plan Takes Center Stage (PHOTO: Nebraska Examiner)
LB 34 to Limit Local Government Spending and Fund County Jails: Key Property Tax Reforms in Nebraska
LB 34 also limits local government spending and provides money to cover county jail costs. Public safety services would be exempt from spending limits. The bill also suggests changes to the state’s occupation tax and the funding for natural resources districts. Lawmakers will debate these changes in the upcoming sessions, which could significantly impact how property taxes are managed in Nebraska.
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