Special Session Legislative Testimony

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 lower property taxes. While there are many components of this bill that the Platte Institute supports, including measures which impose a property tax cap on cities and counties and deploying the LB 1107 tax credits to directly reduce school property tax levies on a dollar-for-dollar basis, we fundamentally oppose components which would tax business inputs which would lead to higher consumer prices. Further, unreliable income such as tobacco tax increases and taxes on advertising should be avoided. 

LB 7, LB 31 – Opposition Testimony – Both bills create new income tax brackets for high earners ending the progress Nebraska made in 2023 to make our state more competitive. These bills would result in outmigration and put Nebraska at a competitive disadvantage. 

LB 9 – Neutral Testimony – LB 9 creates the framework for a workable proposal to reduce property taxes. Platte Institute thinks that lowering the school district levy cap will provide broad and substantial tax relief, and that reallocating the LB1107 income tax credit for property taxes paid to pay for lower school district tax levy rates is a prudent way to ensure those dollars provide direct tax relief. Furthermore, Platte Institute has been clear on the record that property tax relief should focus on reducing school district tax levies rather than city and county tax levies. 

LB 10 – Opposition Testimony – Delays 2023 income tax cuts to 2030.  

While we understand the intent of LB10 is to assure adequate revenues as the state looks to take on local property tax burdens, the Platte Institute opposes LB10. We believe that delaying income tax reductions will be detrimental to Nebraska’s economy and regional competitiveness. 

LB 11, LB 41 – Opposition Testimony – Increases tobacco and vape taxes. Our research clearly shows that when tobacco taxes are increased, tax avoidance and border bleed occur. This would lead to unreliable income creating a hole in the funding mechanism for the property tax plan.   

LB 51 – Opposition Testimony – Creates a new tax on unrecognized capital gains and would be detrimental for Nebraska taxpayers.