A bill that would make it harder for local governments to collect a property tax windfall when home and land values rise has won first-round approval from Nebraska lawmakers.
Senators advanced the measure Monday on a 35-1 vote.
The proposal by Sen. Lou Ann Linehan, of Omaha, would automatically lower property tax levies to adjust for any increase in valuations so that local governments collect the same total amount of money as the previous year.
Linehan says it’s designed to prevent counties, school districts and other governments from misleading the public when they boast about not raising levies. In many of those cases, property owners still end up paying more because valuations have risen.
Local governments would have to hold a public hearing and vote to raise the levies.