Nebraska’s tangible personal property tax (TPP) needs to be reformed. Nebraska ranks 45th in the nation for overall property tax competitiveness, and TPP is one of the culprits for Nebraska’s uncompetitive property tax system. Tangible personal property (TPP) includes the machinery, equipment, fixtures, and supplies that businesses use to conduct business. Unlike real property, which...
Nebraska lawmakers imposed a property tax cap in LB 34, which was passed during the 2024 summer special session. The property tax cap allows cities and counties to raise property taxes by 0% or inflation, whichever is greater. So far, so good. But not all inflation measures are created equally. In fact, the metric LB...
Nebraska’s Corporation Occupation Tax is a business tax levied upon a business’ net worth in Nebraska rather than the business’ profitability. This form of property taxation is generally known as a capital stock tax, and is calculated based upon the value of capital within the state. The Corporation Occupation Tax funds the Nebraska Secretary of...
Last week Governor Pillen provided state senators with the newly published 2024 School Property Tax Collection Report and asked them to consider legislation to address inconsistencies in state aid to schools. We applaud the Governor’s ongoing efforts to improve the competitiveness of the state’s education systems and believe addressing the perceived disparities in the state...
Nebraska’s 2023 income tax reforms are beginning to bear fruit in the form of enhanced state tax competitiveness. So says the findings of Tax Foundation’s 2025 State Tax Competitiveness Index, a tool that assesses the competitiveness of each state’s tax code. Nebraska moved up from #30 in the 2024 edition to #24 in the 2025...
Over the last 24 years, Nebraska’s major revenue sources have grown at roughly 2.5-3 times the rate of inflation, with property tax collections outpacing sales and income tax collections at a slightly faster clip. This overall high rate of revenue and spending growth is what drives Nebraska’s high tax burden. Nebraska’s property tax remains the...
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...
LR2CA, a constitutional amendment proposed by Senator Tom Brandt, emerged as an interesting option with significant support during Friday’s special session. While this proposal would not immediately change property taxes, it would open a constitutional door for legislators to tax different property types differently. Article VIII of the Nebraska Constitution defines the types of taxes...
I’m frustrated – again. It’s the time of year when we are all braving the heat and the release of countless budgets across the state. And the majority of the elected officials crafting and approving budgets are making the case not only for a Special Legislative Session to reduce property taxes, but reinforcing my number...
The Special Legislative Session to address property taxes has officially begun, and our team is hard at work advocating for sound policy and opposing proposals that would hurt Nebraska. So far this session, we have provided testimony on the following bills: LB 1– This bill, carried by Senator Linehan, is Governor Pillen’s plan to...
The purpose of Platte Institute’s tax vision document is to lay out the principles that Platte Institute believes should guide the ongoing property tax reform efforts. First, we will lay out actions to avoid with explanation. Then we will argue for accomplishing fundamental policy deliverables that are necessary for the successful delivery of property tax...
Iowa’s spending restraint has allowed the Hawkeye State to accelerate previously-enacted tax reforms. Thanks to a package of new tax reforms, Iowa’s income tax will be lowered to a flat 3.8% beginning in 2025, far less than half the state’s 8.98% top rate when Iowa’s tax reforms began. The Hawkeye State’s accelerating tax relief adds...
Sustainable tax reform depends upon sustainable revenue sources. And while Platte Institute has been critical of a state-local tax swap because it uses state funds to subsidize local spending, it’s also worth clarifying that not all state funding sources are created equally. Regardless of Platte’s position on tax swaps, no tax reform should be built...
As Platte Institute wrote in National Review last year, Nebraska achieved the best tax reform in the country in 2023, delivering long-overdue income tax reform and dramatically enhancing the state’s competitiveness. It was the type of achievement that lawmakers wait a whole career to accomplish. The 2023 income tax reform will phase in over several...