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Nebraska legislature to debate property tax reduction bill

Debate on a highly-anticipated property tax reduction bill is scheduled to get underway Tuesday in the Nebraska legislature.

State Senator Curt Friesen, a farmer from Henderson, says he has been fighting for property tax relief for farmers and ranchers for the past five years.

“This is the first time we’ve had what I would call a fairly decent, comprehensive bill on the floor of the legislature,” Friesen says. “It’s not quite what I hoped for, but we’ll see how the debate goes. Maybe others feel the same way—we’ll see if we can make it better.

“But it’s a challenge. The governor is going to be opposed to it and it’s going to be a real heavy lift on the floor of the legislature.”

The bill would increase the state sales tax by one-half percent and eliminate some sales tax exemptions. State aid to schools would be increased allowing for the reduction in local property taxes. One of Friesen’s concerns is that it would take money from the state’s property tax credit fund, which has been providing some relief to farmers.

Looming over the debate is a proposed 2020 ballot initiative to provide a state income tax credit for 35 percent of local property taxes paid.

“I guess as a backstop that’s something I would probably support if we can’t get anything done in the legislature,” Friesen says.