‘Scaled-Back’ Version of Property Tax Relief Plan Approved by Nebraska Lawmakers

LINCOLN–(KFOR Aug. 20)–Nebraska lawmakers on Tuesday passed a scaled-back version of the property tax relief bill, LB 34, which now heads to Governor Jim Pillen’s desk for his signature.

However, the governor last week said he vowed to veto any version of the tax reform bill that “watered-down” the caps originally put in the proposal.

LB 34 with an emergency clause passed on a 39-6 vote. The bill among other things would establish the School District Property Tax Relief Credit Fund to provide relief from school district tax levies. About $750-million will be transferred from the General Fund to the School District Property Tax Relief Credit Fund this fiscal year, and will increase the following year.

Lawmakers also passed LB 2 and LB 3 with emergency clauses. Those bills will help cover the funds that won’t come in when LB 34 goes into effect. Omaha Senator Justin Wayne offered an amendment that would exempt electric bills from the same sales tax, by paying for it with hiked sin taxes. Wayne’s amendment did pick up support from senators, but in the end it failed to get enough backing.

Wayne offered another amendment that would tax stores differently, which also failed to get support.

“But at the end of the day, I think people just want to go home and tax grandma’s house no different than Target,” Wayne said referring to it as good policy in sarcastic tone.