NEBRASKA LEGISLATURE: Lawmakers Advance Second Budget Bill for Property Tax Relief

LINCOLN–(KFOR Aug. 16)–The main property tax relief bill Nebraska lawmakers are working on will resume debate in the second round of discussion on Friday morning.

Lawmakers worked well into Thursday night on LB 34, which would set the cap at zero percent in times of deflation or at the level of inflation, based on state and local consumption expenditures. With $185-million in tax credits, LB 34 would provide 3% new relief from the total $5.3-billion in property taxes collected last year.

Earlier on Thursday, the second of two budget bills of the special session intended to offset the costs of a slimmed-down property tax relief plan advanced on Thursday, after long discussion. LB 3 would shift $22-million in fees and interest gathered by state agencies into the general fund to cover some costs of LB 34. The bill advanced in a 35-11 vote by Nebraska lawmakers after eight hours of debate. LB 3 followed passage of LB 2 on Wednesday, which contained $117 million in spending cuts.

Combined, the two would cover most of the $185 million cost of the new relief. The state would use $46 million from its cash reserves to cover the rest, but LB 3 helps cover part of the cost.