Proposals to limit or freeze local governments from raising property taxes drew support and opposition during a legislative hearing Wednesday.They are part of Gov. Jim Pillen’s plan to cut property taxes by $2 billion.Homeowners like Liz Abel of Omaha told the Legislature’s Revenue Committee on Wednesday that her property tax bill increased by 38%.”I continually ask my husband. Are you sure you want to live here? Because I’m not the weather is not a draw and the enormous taxes are a complete detriment,” Abel said.She and others support Sen. Brad von Gillern’s LB 1241.It would automatically lower tax rates for schools and local governments to adjust for increases in property valuations.”It’s designed to eliminate the windfall that local taxing entities have seen in recent years,” von Gillern said. He said it would create greater transparency and accountability.”This legislation absolutely must be included in the Governor’s Property Tax Relief Plan,” Nebraska Taxpayers for Freedom Chairman Doug Kagan said.Another part of Pillen’s plan is LB 1316. It would replace a soft cap on school districts enacted last year and require a vote of the people for any property tax increase over 3%.The bill’s sponsor state Sen. Lou Ann Linehan is angry that nearly 80% of school districts overrode the limit.”This is in a year when we increased state funding by $328 million for all schools,” Linehan said.But school and local government officials lined up to oppose both measures.”Freezing property tax revenue at current levels would be catastrophic for school districts,” said Omaha Public Schools Chief Financial Officer Shane Rhian.Tyler Newton with the Heartland Community School Board said they overrode the 3% cap last year to help pay for a new elementary school teacher. “Nebraska’s elected school boards need the ability to locally govern their districts and LB 1316 eliminates much of that local authority,” Newton said.Sarpy County Commissioner David Klug said freezing their property tax revenue would “stifle” their ability to keep up with growth.”LB 1241 would keep county property tax revenues flat regardless of inflation increases in CPI or growth within the county, which would have a tremendously negative impact on the county’s ability to provide necessary services for Nebraskans like public safety and roads,” Klug said. Lincoln Public Schools Associate Superintendent for Business Affairs Liz Standish said they have a bigger concern.She said the two bills could have a negative impact when added to changes to the state’s school funding formula. “LPS lost $10 million in equalization aid. And next year we will use lose $30 million in equalization aid if our property taxes were frozen flat. In that climate we would have a major major problem on our hands,” Standish said. “We cannot do this in a piecemeal fashion We have to know how all the pieces and parts work together,” Standish said.Von Gillern said he is willing to work with schools and local governments.”The intention is not to put school districts, counties or community colleges in a bad place. We need to account for growth and ensure that there are no unintended outcomes,” von Gillern said.Linehan said something needs to be done.”We cannot walk away this year. When we have a governor willing to help us and say, it’s OK that this is happening. And the idea that we can trust the local taxing entities to take care of it. We have 20 years of experience that shows that’s not going to work,” Linehan said.On Thursday the Revenue Committee will be in for another marathon session.They are scheduled to hear eight bills that eliminate sales tax exemptions on services and items to help fund the tax relief.Click here for the latest headlines from KETV NewsWatch 7
Proposals to limit or freeze local governments from raising property taxes drew support and opposition during a legislative hearing Wednesday.
They are part of Gov. Jim Pillen’s plan to cut property taxes by $2 billion.
Homeowners like Liz Abel of Omaha told the Legislature’s Revenue Committee on Wednesday that her property tax bill increased by 38%.
“I continually ask my husband. Are you sure you want to live here? Because I’m not the weather is not a draw and the enormous taxes are a complete detriment,” Abel said.
She and others support Sen. Brad von Gillern’s LB 1241.
It would automatically lower tax rates for schools and local governments to adjust for increases in property valuations.
“It’s designed to eliminate the windfall that local taxing entities have seen in recent years,” von Gillern said.
He said it would create greater transparency and accountability.
“This legislation absolutely must be included in the Governor’s Property Tax Relief Plan,” Nebraska Taxpayers for Freedom Chairman Doug Kagan said.
Another part of Pillen’s plan is LB 1316.
It would replace a soft cap on school districts enacted last year and require a vote of the people for any property tax increase over 3%.
The bill’s sponsor state Sen. Lou Ann Linehan is angry that nearly 80% of school districts overrode the limit.
“This is in a year when we increased state funding by $328 million for all schools,” Linehan said.
But school and local government officials lined up to oppose both measures.
“Freezing property tax revenue at current levels would be catastrophic for school districts,” said Omaha Public Schools Chief Financial Officer Shane Rhian.
Tyler Newton with the Heartland Community School Board said they overrode the 3% cap last year to help pay for a new elementary school teacher.
“Nebraska’s elected school boards need the ability to locally govern their districts and LB 1316 eliminates much of that local authority,” Newton said.
Sarpy County Commissioner David Klug said freezing their property tax revenue would “stifle” their ability to keep up with growth.
“LB 1241 would keep county property tax revenues flat regardless of inflation increases in CPI or growth within the county, which would have a tremendously negative impact on the county’s ability to provide necessary services for Nebraskans like public safety and roads,” Klug said.
Lincoln Public Schools Associate Superintendent for Business Affairs Liz Standish said they have a bigger concern.
She said the two bills could have a negative impact when added to changes to the state’s school funding formula.
“LPS lost $10 million in equalization aid. And next year we will use lose $30 million in equalization aid if our property taxes were frozen flat. In that climate we would have a major major problem on our hands,” Standish said.
“We cannot do this in a piecemeal fashion We have to know how all the pieces and parts work together,” Standish said.
Von Gillern said he is willing to work with schools and local governments.
“The intention is not to put school districts, counties or community colleges in a bad place. We need to account for growth and ensure that there are no unintended outcomes,” von Gillern said.
Linehan said something needs to be done.
“We cannot walk away this year. When we have a governor willing to help us and say, it’s OK that this is happening. And the idea that we can trust the local taxing entities to take care of it. We have 20 years of experience that shows that’s not going to work,” Linehan said.
On Thursday the Revenue Committee will be in for another marathon session.
They are scheduled to hear eight bills that eliminate sales tax exemptions on services and items to help fund the tax relief.
