On a 34-11 vote to end debate on Legislative Bill 34, lawmakers approved a very different version of a Property Tax Relief plan than initially proposed by Governor Jim Pillen.
Senators worked through various tax packages before landing at a “consensus” that contained just three components.
– “Front-loading” income tax credits for property taxes paid so they appear first on annual property tax statements. About 50% of such eligible credits were unclaimed.
– Expanding school tax credits to a total of $750 million in the next fiscal year that would grow in future years.
– Restricting annual increases in property tax-asking authority by municipal and county governments by the state and the local index of inflation, or 0% in times of deflation. Public safety services and the work of county attorneys and public defenders would be exceptions, as would voter approval and emergencies.
The Nebraska Examiner reports that to fund the new plan, lawmakers will consider two bills advanced from the Appropriations Committee related to budget cuts, to the tune of about $139 million (LB 2), and increased fees (LB 3).
Debate on those two measures will begin at 9 a.m. Wednesday. LB 34 is expected to return for debate later this week.
The Nebraska Examiner story is available here