We’re rolling toward the halfway mark of the session. At this point, we’re debating legislative bills/resolutions that have been voted out of their respective committees in the mornings until the lunch hour with committee hearings following in the afternoon. There are many issues we face in Southeast Nebraska; tax relief is always at the top of my agenda. Governor Jim Pillen designated six priority bills for this Legislative session aimed at modernizing Nebraska’s tax code and making our state’s tax structure more competitive with other states. This week, I would like to highlight some of those bills for tax relief. 

• Senator Von Gillern’s LB 804 would reduce the top corporate state income tax rate from 7.25 percent to 5.84 percent. If passed, it would result in immediate and further tax relief of $78.5 million for the tax year 2024. 

• Senator Kauth’s LB 641 would hasten tax relief by advancing the state’s Social Security benefit exemption one year earlier. This proposal would raise the exemption from the current 60 percent level to a full 100 percent, generating an additional $17 million in tax relief savings in the fiscal year 2024. Also, the change would finally align Nebraska with the other 37 states that do not impose a tax on Social Security income.

• Senator Linehan’s LB 754 would gradually reduce the top-tier tax rate for individuals to 3.99 percent for the tax year beginning January 1, 2027, and each subsequent tax year after. For the tax year beginning January 1, 2027, LB 754 would also gradually reduce the corporate income tax rate for all earnings over $100,000 to 3.99 percent for that year and each tax year after. This would result in annual tax relief of over $720 million. 

• Senator Albrecht’s LB 750 proposes that the state switch from a market assessment to one based on income-earning potential in order to make the valuation of agricultural and horticultural land more fair. According to the Agricultural Value Fairness Act, valuations would be based on the type of land and the region, with a combined statewide growth cap of 3.5 percent. This switch would prevent “high bidders” on agricultural land from driving up taxes on their neighbors. 

• Senator Murman’s LB 783 would prohibit community colleges from levying property taxes beginning the fiscal year 2025. If passed, state funds would be allocated to cover current property tax requests.  As a result, Nebraskans would see a statewide average property tax cut of 5.3 percent and by the tax year 2026, $282.5 million in property tax relief. 

I look forward to discussing these issues in the coming weeks on the legislative floor. If anything is certain and spoken loud and clear: Nebraskans want tax relief and I will continue to be fighting for it on the front lines. As always, I welcome your input on issues important to you. Follow along on my Facebook and Twitter pages, both entitled “Senator Julie Slama” for more updates, or contact me directly at Senator Julie Slama, District 1 State Capitol, PO Box 94604, Lincoln NE 68509-4604; telephone: 402-471-2733; email: jslama@leg.ne.gov.