Nebraska is facing a surge in property tax bills, prompting over 100 proposals by lawmakers to address the issue. These proposals range from expanding the state’s sales tax base to the legalization of marijuana to increase tax revenue. Governor Jim Pillen called a special session of the legislature after they failed to pass a property tax relief bill during the regular session that ended in April.
The escalating property tax bills are mainly due to increasing housing and land prices, affecting homeowners and farmers disproportionately. The state law mandates that residential property is assessed at nearly 100% of fair market value, while agricultural land is assessed at 75%. Property taxes are collected by local governments to finance public services, such as education and public safety.
Over 80 bills and 24 constitutional amendments were proposed during the initial days of the special session. Governor Pillen’s proclamation outlined the scope of the session, focusing on property tax relief. The proposals being closely monitored include the governor’s plan to reduce property taxes by 50%, which involves extending the state’s sales tax to various goods and services and implementing sin taxes on items like candy, soda, and cigarettes.
Other bills aim to offer a universal homestead exemption to lower property tax burdens and explore alternative revenue sources to address the issue. However, despite gaining attention, these proposals face challenges in the conservative Nebraska Legislature. Additional bills introduced include legalizing marijuana to generate tax revenue and expanding sports betting to increase state revenue.
The special session will involve public hearings on each proposal to address the pressing issue of soaring property taxes and the need for relief for residents and taxpayers across Nebraska.
