LINCOLN, NE – Nebraska State Senator Heath Mello (District 5) issued the following statement in response to the introduction of LB 970 by Governor Dave Heineman:

“Despite the fact that middle-class Nebraskans have been clamoring for the state to address our high residential property taxes, Governor Heineman continues to focus on reducing taxes for the wealthiest 20%,” said Mello, “Even the ultra-conservative Tax Foundation, a group whose data Governor Heineman cites as evidence in support of his package, shows that Nebraska ranks worse in property taxes in comparison to any other tax ranking considered by LB 970.”

The 2012 Tax Foundation Report, which was unveiled yesterday, ranked Nebraska’s overall tax climate as 30th among the fifty states. Of the five different tax burdens considered by the report, Nebraska’s property tax ranking was 37th, the worst of five rankings assigned to the state.

In response to Heineman’s proposal, Mello has introduced LB 977, the Property Tax Relief Act. Under the bill, Nebraska homeowners would receive approximately $76 million in property tax relief. Through a homestead exemption of the first $8,000 in a home’s value, the average homeowner in Nebraska would receive more than $150 in property tax relief annually.

Unlike the existing Property Tax Credit program, Mello’s bill is specifically targeted to residential property taxpayers, ensuring that Nebraska residents, not out-of-state landowners, receive the bulk of the benefits.

“LB 977 represents the most significant middle-class tax relief package we could consider this session,” said Mello. “If we are going to discuss any tax changes this session, property tax relief must be part of the debate.”

FOR IMMEDIATE RELEASE:
January 26, 2012

For More Information:
Senator Heath Mello, (402) 471-2710