Last Tuesday, August 20th, we finished up the special session Sine Die after passing property tax legislation along with the two budget bills making adjustments to the biennial budget and approving the bill to fund the special session.

When we passed LB1107 in 2020, it was to help with property tax relief. It created a refundable income tax credit based on the amount an eligible taxpayer paid in property taxes to their school district during the previous year, not including those amounts levied for bonds or levy overrides. The credit is allowed to each individual, business, or other entity that pays school district taxes. In 2022 we added credit for both school district and community college property taxes paid. As we approached special session, we found out that 40-45% of Nebraskans were not claiming this property tax credit on their income tax return and determined that it would be a good idea to frontload the property tax credit so you would see it on your property tax statement. (Portions taken from “Tax package clears final round after cloture vote”. Unicameral Update. 13 August, 2020. https://update.legislature.ne.gov/?p=28523)

LB34 passed with an emergency clause 40-3. Governor Pillen then signed it into law on August 20th. Under LB34, introduced by Senator Tom Brewer of Gordon, a city, county, or village may increase its property tax request authority. This bill is quite simple and does two things:

1. It puts a cap on property taxes levied by cities, counties, and villages at 0% or the inflation rate determined by the State and Local Consumption Expenditures and Gross Investment rate for a prior year, whichever is greater.
2. Frontloads the refundable income tax credit so you will see it on your property tax statement rather than claim it the following year on your income tax return.

Exemptions to this include:

• approved bonds,
• response to a declared emergency,
• amount of unused property tax request authority that may be carried forward to future budget years,
• increase in property tax request authority approved by voters,
• amount of property taxes budgeted for public safety services (crime prevention, offender detention, and firefighter, police, medical, ambulance or other emergency services), and
• amount of property taxes budgeted for public safety services, county attorneys, and public defenders.

LB34 requires the state treasurer to transfer $750 million in general funds–including the approximately $565 million allocated to the refundable income tax credit program–to the new program in fiscal year 2024-2025. If the General Fund net receipts increase by more than 3% annually, the excess amount will be transferred to the new program’s cash fund. (“Cap on local tax asking, additional property tax relief approved”. Unicameral Update. 20 August, 2024. https://update.legislature.ne.gov/?p=36836)

Following the passage of these bills, Governor Pillen hosted a press conference and bill signing with invited state senators who supported passage of legislative initiatives introduced during the special session aimed at fixing the state’s rising property tax crisis. “LB 34 is an important step forward,” said Governor Pillen. “I appreciate the efforts of Senator Lou Ann Linehan, members of the Revenue and Appropriations committees and the other senators here today who brought substantive ideas and fought hard on behalf of Nebraskans. This is not a one-and-done issue. It’s the top concern that Nebraskans talk to me about wherever I go, and it needs to be addressed so we are no longer chasing seniors out of their homes and killing the dream of home ownership for young people.”

Senator Linehan touted the significance of limiting taxing authority by cities and counties year-over-year to the greater of inflation or 0% saying, “Putting caps on spending is the only real answer to fixing this. The reason our property taxes are high is because we have too many taxing authorities spending too much money. Finally, anything that is over three percent in revenue growth can go to property tax relief.”

State Treasurer Tom Briese congratulated his former legislative colleagues for their work, but echoed sentiments that the pursuit for more substantive property tax relief was far from over. He pointed to LB 1 which he said would have significantly addressed the property tax issue and was almost unanimously approved by the Governor’s working group. “Unfortunately, lobbyists and special interests got in the way. Going forward, they will need to decide if they are serious about property tax relief, or they just want to talk about it,” cautioned Treasurer Briese. (Strimple, Laura and Urlis, Allan. Press Release. “Gov. Pillen Touts Passage of Bills at Signing Ceremony, Says Much More is Left to Be Done for Property Tax Relief”. 20 August, 2024. https://shorturl.at/nSeEV)

I personally came down to Lincoln to get 40% relief at a minimum, but 50% was preferred. I have been a member of both of Governor Pillen’s Property Tax Working Groups where we diligently worked hard to find a good solution to the property tax crisis. Unfortunately, those at the table were not as on board with the plan as they portrayed at the meetings. Lobbyists worked against us in order to keep their exemptions. They fought against adding any sales taxes.

On a positive note–we answered the call Governor Pillen set forth in his proclamation declaring a special session. Even though the final product didn’t look like what we wanted, we were able to help get the process started. I know the new group of State Senators can continue pursuing property tax relief. I am sure we will see many bills introduced in 2025 that will address ways to work toward property tax relief.

NDOT Current Road Construction update

Work began on Friday, August 23rd, on US-77 between Lyons and Walthill. Work will include asphalt overlay, concrete pavement repair, and culvert work. Traffic will be maintained with a pilot car and flaggers. Anticipated completion is mid-summer 2025. Motorists are reminded to drive cautiously in and near work zones, to buckle up, and to put phones down.
Work is continuing on NE-9 in both directions between Willis Street (near Pender) and Prairie Street (Emerson). Bridge construction. A lane is closed intermittently. Look out for temporary traffic lights. There is a 12-foot width in effect.

With road construction going on and school starting up, please make sure you keep your eyes open for students and school buses as school gets into full swing as well as the road construction workers working on the roads in our area. Just a reminder that fines for speeding are doubled for exceeding the posted speed limit in construction zones and in school crossing zones.

This past weekend I enjoyed participating in the Hubbard Hoot Owl Days by being in the parade and taking in the many activities going on. The previous weekend Mike enjoyed attending Wakefest in Wakefield as I was in special session in Lincoln. It has been nice to attend and participate in the many community celebrations going on in District 17 over the past several weeks. I have enjoyed seeing many familiar faces. There is still much work to be done in the interim as I finish up my time as your State Senator.

As always, I invite you to let me know your thoughts, ideas, concerns, or suggestions by calling my office at (402) 471-2716 or emailing me at jalbrecht@leg.ne.gov.