Revenue omnibus bill amended, advanced to final round

A package of revenue-related measures cleared the second round of debate May 9 after lawmakers amended it to modify a proposed property tax exemption related to recreational trail easements.

The Revenue Committee introduced LB647 as a shell bill. It was amended on general file to include provisions of several other bills considered by the committee this session.

On select file, Bellevue Sen. Rita Sanders introduced an amendment, adopted 33-0, to include the amended provisions of LB314, sponsored by Sen. Tony Sorrentino of Elkhorn.

The proposal would allow a political subdivision and nonprofit corporation to apply for temporary approval for state assistance under the Sports Arena Facility Financing Assistance Act if each has adopted a resolution authorizing either co-applicant to pursue financing or bonds to acquire, construct, improve or equip an eligible sports arena facility.

The approval would become permanent if a building permit for the facility is issued within 24 months of the temporary approval. If a permit is not issued within that period, the temporary approval would become void.

Sanders said the amendment also would allow a political subdivision and nonprofit corporation to use state turnback funds to lease a privately owned sports arena facility for no more than 20 years.

The Sanders amendment also would modify a measure included in LB647 on general file. Under the proposal, originally introduced by Norfolk Sen. Robert Dover in LB628, a taxpayer who encumbers their property with a perpetual recreational trail easement could apply to their county assessor for an annual property tax exemption equal to 10 cents per square foot of the property encumbered by the easement.

Under the amendment, the taxpayer instead could apply for a property tax exemption for the portion of the property that has been encumbered with the easement. If the exemption is approved, the property would remain exempt until it no longer is encumbered with the easement.

Sanders said the alternative approach would be easier for counties to administer.

Sen. George Dungan of Lincoln introduced an amendment to remove the amended provisions of LB131 from the bill. Under that proposal, sponsored by Sorrentino, Nebraska educational savings plan trust accounts could be used to pay for private elementary and secondary school tuition beginning in 2029.

Dungan said the measure, which would reduce state revenue by approximately $4 million per year once implemented, disproportionately would benefit middle- and high-income families who already can afford to send their children to private school.

The amendment failed on a vote of 16-28.

Senators then voted 28-6 to advance LB647 to final reading.