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Nebraska ag groups warn budget shortfall could drive property taxes higher

Some Nebraska ag groups say they’re concerned that state’s $471 million budget shortfall could potentially increase property taxes for producers.  

Rancher Steve Sunderman is chairman of the Nebraska Cattlemen’s Taxation Committee. “We’ve maybe have seen a dip in our property tax bills in the last year or two just because of property tax relief that the Legislature has passed, but we realize as valuations on our farm and ranches increase, it’s likely our property taxes are going to increase going forward.”

He says the state should overhaul its tax code, so property taxes don’t entirely fund the state’s education system. “We’re the second lowest state in the country when it comes to state funding for K-12 education. If you’re not going to get that funding from the state, it’s got to come from somewhere. Unfortunately, in Nebraska, it comes from property taxes and we need to rebalance that system.”

Bruce Riecker, senior legislative director with Nebraska Farm Bureau, says it will be difficult for lawmakers to reach consensus on where the money comes from, but it shouldn’t come at the expense of farmers and ranchers. “When we tie it to property taxes, that there may be money to put more money in tax credits for property taxes, that’s probably not going to be something that’s very feasible in this environment right now.”

Riecker says the organization doesn’t support local spending caps to help manage rising costs… “How can we reasonably control the growth of property taxes and still maintain the integrity of local control?”

Both groups say that they expect the majority of the 60-day session to be dominated by the issue. The Legislature is set to convene in early January.