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Nebraska legislature debates property tax relief bill

The rural-urban divide in Nebraska was on full display Tuesday as lawmakers began first round consideration of LB 289.

The bill tackles the state’s overreliance on property taxes to fund schools by replacing those dollars with new sources of revenue, including elimination of numerous service-based sales tax exemptions and increasing the state’s sales tax rate by one-half cent, among other items.

The debate, for the most part, followed along rural-urban lines.

“Property taxes are choking off economic growth across the state,” said Senator Tom Briese, a farmer from Albion. “LB 289 is the most viable, responsible and effective plan we have going here.”

“We have to rely on different resources than property taxes to fund our schools,” said Senator Curt Friesen, a farmer from Henderson.

“If we raise the taxes on folks here in Lincoln, then I want them to see a net gain in terms of government services and revenue—and in this we see a net loss,” said Senator Adam Morfeld of Lincoln.

“I hear you all talk so casually when you’re doing things to hurt poor people. I don’t care about farmers, who’ve got plenty of money,” said Senator Ernie Chambers of Omaha.

“Senator Chambers says, ‘you rich farmers, you rich farmers’. There are poor farmers out there. There are farmers who are losing their farm today,” said Senator Dan Hughes, a farmer from Venango.

Several Nebraska ag groups, in a conference call with reporters just prior to the start of the floor debate, voiced their support for LB 289.

“We’ve talked many times about the importance of balancing the three-legged stool in Nebraska. LB 289 moves us to a better balance,” said Steve Nelson, president of Nebraska Farm Bureau.

Lawmakers adjourned without taking any action. Supporters must now convince Speaker Jim Scheer that they have the 33 votes necessary to break a filibuster in order for the bill to receive further consideration.