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The public hearing to be held by the Revenue Committee, the Education Committee and the Nebraska Retirement Systems Committee on the property tax relief proposal, scheduled for April 18, was cancelled, due to the amendment to LB 289 not being ready in time. The hearing has been rescheduled for Wednesday, April 24 and the 82-page amendment was filed a week in advance, as required by legislative rules. The amendment could be further amended, based on testimony received at the hearing, prior to LB 289 advancing to the full Legislature.
Under the proposed amendment, a foundation aid factor would be added to the school state aid formula. Schools would receive $3474.40 for each student next year, resulting in every school receiving at least a third of its funding through state aid. Currently, more than two-thirds of school districts receive no equalization aid from the state and are funded primarily with property tax revenue. A lid would be placed on school spending, based on the consumer price index and growth within a school district.
The valuation of property will be reduced by 10%, with the valuation of residential and commercial property dropping to 90% and agricultural land to 65% of its value. The local effort rate in the school state aid formula will drop to 90 cents. The proposal represents a 50% increase in state funding for K-12 schools, resulting in $500,000 in property tax relief, which is projected to decrease school property taxes on average by 20%. The proposal would be funded by a ¾ cent sales tax increase, an increase in the cigarette tax to $1.00 per pack, the removal of some sales tax exemptions, including pop, candy, and bottled water, as well as taxing plumbing, heating and air-conditioning services, services provided by moving companies, and veterinarian care for pets.
Immediately after the amendment was filed, Governor Pete Ricketts issued a press release calling the proposal the largest tax increase in Nebraska history. He also criticized the elimination of most of the funding for the Property Tax Credit program.
The Legislature gave initial approval this past week to LB 657, the Nebraska Hemp Act. The passage of the 2018 Federal Farm Bill legalized the growth, cultivation, and processing of hemp across the country. Hemp is drought resistant, can serve as a rotational cash crop, and cannot contain over 0.3% THC. This is the chemical that produces the marijuana high. The legislation creates a process for farmers and cultivators to test their crop for THC compliance to ensure it complies with the Farm Bill.
Under LB 657 as amended, the hemp research pilot program authorized a couple years ago, based on the 2014 Farm Bill, would be expanded to enable wider participation for the 2019 growing season. LB 657 would provide the structure needed to prepare and implement a state plan to conform to the 2018 Farm Bill for the 2020 growing season and beyond. Other states around us have already passed legislation authorizing hemp and we need to get on board, in order to give farmers the opportunity to benefit from this crop.
The Legislature also gave first-round approval to LB 693, which adopts the Neighbor Spoofing Protection Act. The sponsor of the bill worked with the Attorney General’s office and the Public Service Commission on the legislation. The intent of the bill is to reduce the number of calls persons receive from numbers similar to their own, in a deliberate attempt to con people into answering the call. Supporters of the bill acknowledged that this would not entirely resolve the problem because many spoofing calls originate from the Internet or overseas and cannot be traced. LB 693 is patterned after a Kansas law and is among the growing attempt by states to place some constraint on this annoying practice, while Congress works on the issue as well.
LB 155, which as introduced, attempted to prevent public power districts from using eminent domain for the benefit of private wind companies. LB 155 fell two votes short of advancement earlier this session. After it was prioritized a second time, LB 155 was placed on the agenda again. The sponsor of the bill, Senator Tom Brewer, offered a compromise amendment, which resulted in the bill easily receiving first-round approval. The amendment would give landowners who didn’t want a connecting line across their property a chance to argue against it in court.
The Legislature has passed the two-thirds mark of this session. As we continue to discuss bills with priority status, I encourage you to contact me with your thoughts and opinions. I can be reached at District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509. My email address is email@example.com and my telephone number is (402) 471-2801.
Our office received word this past week that Boyd County has been included in the disaster declaration, making federal funding available for individual assistance. Knox County had previously been included, as well as the Santee Sioux Nation. To apply for individual assistance, call FEMA at 1-800-621-3362 or register online at www.DisasterAssistance.gov. This is in addition to the counties and tribal areas that have qualified for public assistance.
The Legislature debated LB 227 for six hours this past week before advancing it to the second stage of debate. LB 227, introduced by Venango Senator Dan Hughes, amends the Nebraska Right to Farm Act (NRFA), which protected farmers against nuisance lawsuits brought by individuals who move into agricultural zoned areas. Although the NRFA protected farmers if they were there first, it did not protect them if any changes took place on the farm. Under current law, even the conversion of a non-irrigated farm to an irrigated farm or a transition of the operation within the family could remove the defense provided by the NRFA. LB 227 sought to remedy this.
LB 227 applies to the following situations: the conversion from one type of farm operation to another, a change in ownership or size of the operation, the enrollment in a government program, or the adoption of new technology. An amendment adopted in an effort to resolve concern expressed over neighbor’s rights, would allow lawsuits during a two-year period following any of the changes listed in the bill. If a subsequent change is made, the two-year period would start over. Farmers would still have to comply with county zoning and environmental regulations before any change could take place. Furthermore, lawsuits could be filed at any time if reasonable techniques to mitigate negative effects on the property of others are not employed. Prior to advancement of the bill, the sponsor pledged to work on additional amendments to resolve concerns with the bill.
The amendment that I referred to last week, allowing property taxes to be prorated for victims of a natural disaster, was adopted by the Legislature and LB 512 received first-round approval. I supported the amendment as I think it is unfair that property owners would have to pay property taxes for an entire year, if their home is destroyed part way through.
Another bill discussed this past week, LB 334, proposed to eliminate the Angel Investment Tax Credit program, which hasn’t been very successful, and instead transfer the funding appropriated to the Business Innovation Act. The Business Innovation Act funds grants and loan programs that encourage innovation and startup businesses in Nebraska. The chair of the Revenue Committee suggested that the $4 million appropriation should be used to replenish the Governor’s Emergency Cash Fund, which has dwindled from $5 million to $400,000 due to the recent flooding. Many senators, including myself, supported this suggestion. However, since the $4 million appropriation would not be available until next year, the Appropriations Committee voted to put $6 million in general funds into the emergency fund for the upcoming fiscal year and then use the $4 million plus an additional $1 million, to replenish the emergency fund in 2020-21.
The Revenue Committee has been working on a proposal to share with the full Legislature regarding property tax relief. They plan to hold a public hearing on their amendment to LB 289 on Thursday, April 18. The Education Committee and the Nebraska Retirement Systems Committee will join the Revenue Committee for the hearing. Possible components of the proposal include increasing the sales tax by ½ cent, eliminating the sales tax exemption on pop and candy, charging sales tax on plumbing and moving services, increasing the cigarette tax by 36 cents a pack, reducing the valuation of agricultural land for property tax purposes from 75% to 65% of its value and residential and commercial property from 100% to 90%, and adding a foundation aid component to the school state aid system.
My priority bill, LB 243, was passed by the Legislature on a 43-0 vote. It creates a task force that is to develop a healthy soils initiative and action plan. Another bill that I introduced, LB 406, was passed last month with the emergency clause, meaning that it went into effect when the Governor signed it. LB 406 updated statutes dealing with unclaimed property to ensure claimants receive all the unclaimed property rightfully due to them. The State Treasurer’s office recently notified me that the changes made in the law have already begun to simplify certain processes within their office. There is more than a half million dollars in unclaimed property in District #40. A list of unclaimed property can be found at: https://treasurer.nebraska.gov/up/. If your name is listed, the website also contains information on how to file a claim.
I would like to commend the North Central Sports Club, composed of student-athletes from Rock County High School in Bassett and Keya Paha County High School in Springview, for foregoing their spring trip and instead sending the money to a Verdel family that was severely impacted by the flood.
As the Legislature debates controversial issues, I appreciate hearing from constituents as to their views on the bills. I can be reached at firstname.lastname@example.org. My telephone number is (402) 471-2801 and my mailing address is District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.