Fraternal benefit society tax exemption advanced

Lawmakers gave first-round approval April 9 to a bill that would provide tax relief to fraternal benefit societies.

LB414, introduced by Omaha Sen. Burke Harr, would exempt all fraternal benefit societies from property taxes. Harr said there currently is no consistency in how counties tax organizations like Omaha’s Woodmen of the World.

“Even within counties, there are differences in how properties with similar organization are taxed,” he said. “[Woodmen of the World] is an important organization and has the desire to be treated fairly under the law.”

State statute defines fraternal benefit society as any incorporated, not for profit society, order or supreme lodge without capital stock that is conducted solely for the benefit of its members and their beneficiaries.

Norfolk Sen. Jim Scheer supported the bill, saying that not providing the exemption could mean the loss of hundreds of jobs.

“[Woodmen of the World] has been in Omaha for a hundred years and hasn’t asked for much. We have to be competitive, not only to attract business, but to retain business,” he said. “I’d rather keep a high quality, community oriented business in Omaha, keep the jobs and keep the possibility of expansion.”

Calling retention of Woodmen of the World a local issue, Grand Island Sen. Mike Gloor opposed LB414.

“We depend on the insurance industry in the state for a lot of jobs,” he said. “Nonetheless, what is Omaha doing to keep this business in place? If you want to keep business, you need to come up with the money to retain that business in your community.”

Omaha Sen. Ernie Chambers introduced a motion to indefinitely postpone the bill, which failed 12-20, saying LB414 would give a specific entity special treatment.

“This is obviously a bill that would [primarily] benefit Woodmen of the World. To present this under the guise that it would help entities across the state is disingenuous at best and worst,” Chambers said.

Sen. Mike Groene of North Platte supported the motion, saying the property tax burden should be shared equally across the state.

“Woodmen of the World is a good corporate citizen in this state, but we’re all paying too many taxes. Giving just one entity a tax break creates more of a burden for the rest of us,” he said.

Senators advanced the bill to select file on a 29-14 vote.