LINCOLN, Neb. (KLKN) — The Nebraska Legislature advanced a property tax relief package on Tuesday, but it looks a lot different than the original proposal.
Lawmakers voted 36-8 to send the latest version of Legislative Bill 34 to the second round of debate.
At first, the bill couldn’t get enough votes to pass.
So lawmakers amended it to remove the most contentious parts, like reductions to school property tax levies and the removal of about 70 sales tax exemptions.
Instead, the bill would allocate $750 million this year toward income tax credits to offset the property taxes that Nebraskans pay to schools.
That amount would increase each year, reaching $902 million in 2029. It would rise by 3% each year after that.
The bill “frontloads” such tax credits so Nebraskans wouldn’t have to wait until they file their taxes to receive them.
It also caps the growth of local governments’ property tax collections at the inflation rate.
The plan is a far cry from Gov. Jim Pillen’s initial proposal for the special legislative session, which aimed to decrease property taxes by 50%.
But in a statement, Pillen praised lawmakers for moving forward with the bill.
“Although there is much work yet to do to achieve a victory for Nebraskans facing spiraling property tax bills, this vote is a step in the right direction,” he said. “I look forward to partnering with good faith members of the Legislature to continue the work of delivering transformative property tax reform and bringing this consensus bill into law.”
