Tax-happy Aurora Officials Buckle Against Truth in Taxation

Aurora officials have had their hearts set on a major tax hike in 2024, causing Aurora residents to scramble to defend their wallets. Luckily, Aurora’s most recent tax grab fell under the scrutiny of Nebraska’s Truth-in-Taxation law, which allowed taxpayers to push back against a massive tax hike.  

The Truth-in-Taxation neon postcards sent to Aurora taxpayers contained unwelcome news. The Aurora city council planned to increase the property tax by a whopping 40%, causing more than 100 people to show up to voice their opposition at the Truth-in-Taxation hearing. City officials later decreased their property tax increase from 40% to a still-massive 20% property tax hike in the budget hearing the following Monday evening. Ultimately, the council approved the smaller tax hike. 

This isn’t the first time Aurora taxpayers dodged a massive tax increase in 2024. The Aurora city council sought voter permission to impose a local sales tax earlier this year, but voters shot down the new sales tax with 70% voting against. Unfortunately, the voter rejection of the sales tax simply directed that tax-hike energy towards the property tax. Truth-in-Taxation not only slowed the property tax surge, it also further revealed the gulf between the governed and those who are governed in Aurora when it comes to fiscal matters. 

While a 20% property tax increase is still massive, the fact that the original 40% tax increase was quickly reduced to a 20% tax increase indicates that city officials might not be the most careful stewards of taxpayer resources. If the city can enact a budget on a 20% tax increase, it’s curious that they first proposed a 40% increase. Furthermore, such slapdash budget-making will leave taxpayers wondering about the necessity of such large tax increases in general. 

On the positive front, Nebraska’s Truth-in-Taxation law performed admirably and generated a level of public scrutiny that all massive tax increase proposals deserve. Aurora voters were able to push back against a sales tax increase and a property tax hike. The September property tax hearings also highlighted opportunities to improve the Truth-in-Taxation law. 

First, more information is needed. Homeowners should receive more detailed information to justify a proposed tax increase. Tax increases large and small should be explained with rigorous financial data and explanation. And homeowners should receive as much information as possible before the public hearings. 

Second, more time is needed. The Truth-in-Taxation law is most effective when homeowners have significant lead time to understand and digest local financial plans. State lawmakers should require Truth-in-Taxation hearings to occur well before budgets are adopted. Otherwise, budget and spending decisions will be largely baked in ahead of Truth-in-Taxation hearings. 

Finally, the Aurora experience has provided a political lesson, too. In response to repeated attempts to impose massive tax increases against popular will, a slate of three write-in candidates has emerged to challenge Aurora council members for their seats. While the transparency of the Truth-in-Taxation law is not political by nature, local voters and homeowners will understandably react to a string of overzealous tax hike attempts.