Federal fiscal reform will have layers of impact upon states like Nebraska. From taxes to tariffs to entitlements, the highly touted “Big Beautiful Bill” will preserve some elements of America’s fiscal formula while reforming others. Nebraska lawmakers ought to keep an eye on the relevant options on the table and be prepared to respond appropriately. ...
Platte Institute’s proposal to address the state’s $262 budget gap is to freeze the growth in two tax credit programs. The two-year freeze would yield $162 million in budget savings which, coupled with a $100 million draw down on the state’s rainy-day fund, would fix the issue for the current budget. Going forward, lawmakers should...
Last week, Nebraska’s forecasting board revised its projections, and the news wasn’t good. State revenues continue to fall short of expectations, and lawmakers now face an even larger budget gap than they did just weeks ago. If you caught my email last week, you’ll remember we cautioned against oversteering. That message remains just as relevant...
As the tail end of the legislative session approaches, it’s important for Nebraska lawmakers to keep their eyes on the prize of state tax competitiveness. Revenue uncertainty requires that lawmakers redouble their focus on fiscal discipline and tax competitiveness. For Nebraska, tax competitiveness isn’t just a national issue, it’s a neighborhood issue. Since the year...
As Nebraska lawmakers work to close a revenue gap and consider additional property tax relief, they should focus on revenue sources with the wherewithal to produce revenue over time. Unfortunately, the tobacco tax hike proposed in an amendment 603 to LB 170 not only would fail to be an enduring revenue source, it would risk...
Nebraska’s property tax ranks 45th in the nation for overall property tax competitiveness, according to the Tax Foundation’s annual state rankings. One reason that Nebraska’s property tax is so uncompetitive is because the overall property tax burden is so high and because Nebraska’s property tax caps are too loose. These problems are interrelated. Over time, effective...
K-12 school districts account for over $3 billion of all Nebraska property tax collections, making up 60% of the whole. So if lawmakers are looking to deliver tax relief, school district property taxes are a natural target. Lawmakers have used tools from tax credits (beginning with 2020’s LB 1107) to new education funding (such as...
Nebraskans want property tax relief, and lawmakers continue to seek options to deliver tax relief without fueling local government overspending. And unlike in the flush revenue years of 2021-2023, lawmakers also face tightening budgets in upcoming fiscal years. One option for property tax relief is to continue removing smaller property tax levies altogether. For example,...
Nebraska policymakers have been focused on property tax relief for 5 years, and for good reason. According to Tax Foundation’s most recent analysis, Nebraska’s property taxes are the eighth-highest in the country and higher than any neighboring state. Tax Foundation calculated Nebraska’s average effective property tax rate to be 1.44% in 2022. This rate is...
Nebraska’s Revenue Committee faces an unusual challenge this year. Federal lawmakers are likely to change the federal tax code in ways that will impact Nebraska’s revenue streams, and the federal changes will occur during the legislative session. Speaker Mike Johnson announced his intent to pass President Trump’s budgetary agenda within 100 days through the budgetary...
Nebraska’s 2023 income tax reforms are the Cornhusker State’s ultimate tax reform achievement of the last generation. Governor Pillen and Nebraska lawmakers secured a permanent, transformational reform that would qualify as a crowning achievement on any lawmaker’s legacy. It was the type of achievement that lawmakers wait a whole career to accomplish. As Platte Institute wrote...
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...