Another Property Tax Stalemate?
The Legislature is expected to take up debate on LB974 this week, the Revenue Committee's property tax reform proposal. Though public school districts statewide are opposing the plan, this piece in the North Platte Telegraph outlines how the proposal would impact area districts that are currently not receiving state equalization aid.
The Telegraph also had a great editorial over the weekend in anticipation of the debate. With yet another legislative filibuster of a tax proposal likely on the horizon, the Legislature may be effectively conceding its policymaking authority on taxes over to voters.
Polling we've done shows voters in Nebraska are supportive of placing additional limitations on property taxing authority across party and regional lines.
The alternatives offered by school districts are plans to broadly increase education spending without additional limits on property taxing authority, or to add more state money to the property tax credit fund, which provides money to all property taxing political subdivisions. Once again, that proposal would not come with any additional lids on property taxes, either.
Since the state began the property tax credit fund in 2007, more than $2 billion in state sales and income tax dollars have been spent trying to fight the property tax problem, and in return, property taxes in Nebraska have increased by about $2 billion per year.