New tax classification for owner-occupied housing stalls

A proposal that would allow lawmakers to tax owner-occupied housing at a different rate than other classes of property stalled on the second round of debate Aug. 20 after a failed cloture motion, ending debate on it during the special session.

Under LR2CA, sponsored by Sen. Tom Brandt of Plymouth, voters could amend the state constitution to allow the Legislature to provide that owner-occupied housing constitutes a separate and distinct class of property for tax purposes and provide for a different method of taxing it than other types of property.

North Platte Sen. Mike Jacobson opposed the measure. If future senators reduce the valuation of owner-occupied housing, he said, local governments would have to collect more property taxes from commercial and agricultural property owners to make up the difference.

The state’s existing homestead exemption program could be used to provide additional property tax relief to homeowners without changing the constitution, Jacobson added.

After four hours of select file debate, Brandt offered a motion to invoke cloture, which ends debate and forces a vote on the bill and any underlying motions and amendments. The motion failed on a vote of 26-16. Thirty-three votes were needed.