The Appropriations Committee heard several proposals Feb. 27 to provide property tax relief to Nebraskans.<\/p>\n
Three of the bills would make transfers from the General Fund to the Property Tax Credit Cash Fund in the following amounts in fiscal years 2015-16 and 2016-17:
\nLB309, introduced by Hyannis Sen. Al Davis, would transfer $25 million each fiscal year;
\nLB364, introduced by Syracuse Sen. Dan Watermeier, would transfer $60 million each fiscal year; and
\nLB442, introduced by Lincoln Sen. Kate Bolz, would transfer $20 million each fiscal year.<\/p>\n
LB387, introduced by Scribner Sen. David Schnoor, would authorize a one-time transfer of $60 million from the state\u2019s Cash Reserve Fund by Dec. 15, 2015.<\/p>\n
Schnoor said bolstering the property tax fund with cash reserve dollars would provide tax relief to property owners across the state by returning their money to them.<\/p>\n
\u201cThat is money that\u2019s already been paid,\u201d he said. \u201cIt\u2019s sitting in the savings account, so to speak.\u201d<\/p>\n
Watermeier acknowledged that the Appropriations Committee\u2019s preliminary budget proposal includes $45 million in general funds per year for the property tax relief fund, but urged committee members to consider increasing the amount to $60 million.<\/p>\n
Property taxes carry too much of the burden of the state\u2019s taxation system, Watermeier said, and a $60 million increase to the fund would result in an annual property tax credit of approximately $100 per $100,000 valuation.<\/p>\n
\u201c[This bill] provides immediate and direct relief to all Nebraskans who pay property taxes,\u201d he said.<\/p>\n
Lavon Heidemann, representing the Nebraska Farm Bureau and several agricultural organizations, testified in support of LB364. He said rural landowners anticipate double-digit growth in agricultural land valuations in 2016.<\/p>\n
\u201cThe cry for property tax reduction is loud and growing,\u201d Heidemann said. \u201cFor the state\u2019s famers and ranchers, the need for property tax relief is real.\u201d<\/p>\n
Renee Fry of OpenSky Policy Institute testified in opposition to all four bills. Calling her organization\u2019s opposition to LB309, LB364 and LB442 \u201creluctant,\u201d Fry agreed that property tax relief is needed. <\/p>\n
\u201cOur state\u2019s three-legged stool is out of balance and we rely too heavily on property taxes,\u201d she said.<\/p>\n
However, Fry said, providing property tax relief through general fund transfers would remove the incentive to engage in systemic reform of the state\u2019s tax system.<\/p>\n
Fry also testified in opposition to LB387, saying the bill would reduce the state\u2019s cash reserve to an amount below the recommended 16 percent of the General Fund\u2014or two months of state expenditures. It is important that the state maintain the cash reserve to guard against economic volatility, she said.<\/p>\n
\u201cOur cash reserve needs to be at least that size to deal with the rainy days that are sure to come,\u201d Fry said.<\/p>\n
The committee took no immediate action on the bills.<\/p>\n","protected":false},"excerpt":{"rendered":"
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