“Grand Bargain” for Property Tax Relief

Last week served as the culmination of two years of negotiations and was the most productive week yet of the resumed session. Property tax relief is my top legislative priority while in office, and a $375 million, minimum, property tax relief bill was finally given the green light by most of the Legislature. Last Wednesday evening, the Legislature gave first-round approval, 43-2, to the “Grand Bargain,” LB 1107.

LB 1107 is the vehicle bill for property tax relief, business incentives, and funding for a project at the University of Nebraska Medical Center. After months of negotiations, the proposal includes a refundable income tax credit applied against a taxpayer’s school property taxes to the $275 million in current state property tax credits. The state commits an increase of that fund of $125 million in the first year and would rise to $375 million by the fifth year. This would total to $650 million in state-funded property tax relief. That figure could rise, as revenues from any potential legalization of gambling in Nebraska (which will be on the November 3 ballot) are also earmarked for property tax relief. This is a great start, but there is still a need for structural property tax reform to provide long-term relief.

The new business tax incentive program funding would begin at $25 million annually for the first two years and rise to $150 million in the fifth year. 

The Legislature also had a huge accomplishment on Wednesday with the passage of LB 814 on the first round to end the horrific practice of dismemberment abortion. The bill prohibits the procedure generally known as dilation and evacuation, D & E, which is when a fetus is ripped apart limb by limb while still alive in the womb. The bill received 34 votes which is one more than needed to stop a filibuster and put it to a vote. 

The Nebraska Legislature had a defining week as we near the end of the second session. We’ll know by this Thursday, the final day of session, if the necessary 33 votes can stick together for final passage of both LB 1107 and LB 814.

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.