Property tax hearing attendance rule amended, advanced

Lawmakers gave first-round approval Jan. 20 to a bill intended to increase accountability for local governments seeking to raise property taxes.

The Property Tax Request Act, passed by the Legislature in 2021, requires counties, cities and school districts to participate in a joint public hearing before increasing their property tax request by more than an allowable growth percentage. Affected taxpayers are notified of the hearings via pink postcards.

Under current law, at least one elected official — or a designated representative — from each participating political subdivision must attend the hearing.

LB384, as introduced by Sen. Tanya Storer of Whitman last year, would require a majority of the elected members of the governing body of each participating political subdivision to attend.

Storer said a county could meet the current requirement by sending a clerk or treasurer to a hearing rather than a commissioner. She said LB384 would ensure that officials who are directly responsible for adopting a political subdivision’s budget and setting its tax rate are present.

“If you are going to vote to raise the taxes beyond the limit,” Storer said, “you need to be able to show up and hear what the constituents have to say about that.”

A Revenue Committee amendment, adopted 44-0, instead would require the attendance of one voting member of each governing body.

Elkhorn Sen. R. Brad von Gillern, committee chairperson, supported LB384 and the amendment. Changing the requirement from a majority of board members to one would help avoid scheduling conflicts and overcrowding while still promoting accountability, he said.

Sen. Eliot Bostar of Lincoln introduced an amendment, adopted 39-1, that would require the county assessor of the county hosting the hearing to attend.

“Since your … property taxes are a function of the rate and your valuation,” he said, “I think it’s important to have the parties that are establishing both the rate and your valuation present.”

Senators voted 46-0 to advance LB384 to select file.