Public property tax exemption amended, re-advanced

Property owned by governmental entities would be exempt from paying property taxes under a bill returned to select file and amended March 27.

Currently, a governmental entity wishing to issue tax-free bonds without a public vote must form a nonprofit leasing corporation. The corporation issues bonds and purchases the property. Ownership remains with the corporation until the bonds are paid off, at which time the property title is transferred to the government entity.

LB902, introduced by Omaha Sen. Burke Harr, would provide property and sales tax exemptions for nonprofit entities created by local governments to utilize a lease-purchase agreement that requires transfer of title to the local government upon completion of all payments due under the lease-purchase agreement.

Harr filed a motion to return the bill to select file for consideration of an amendment to remove the bill’s emergency clause and a retroactive provision that was adopted on general file. Senators obliged 37-0 and adopted the amendment 42-2.

The bill would require a public vote for any project exceeding established spending thresholds. Any project costing more than $50,000 or 0.6 percent of total or actual value of real and personal property of the governmental subdivision would be subject to voter approval.

The bill passed March 30 on a 44-0 vote.