{"id":25180,"date":"2019-02-28T16:07:48","date_gmt":"2019-02-28T22:07:48","guid":{"rendered":"http:\/\/update.legislature.ne.gov\/?p=25180"},"modified":"2019-02-28T16:07:48","modified_gmt":"2019-02-28T22:07:48","slug":"constitutional-limit-on-local-property-tax-increases-proposed","status":"publish","type":"post","link":"https:\/\/update.legislature.ne.gov\/?p=25180","title":{"rendered":"Constitutional limit on local property tax increases proposed"},"content":{"rendered":"

Cities, counties and school districts could not increase the amount of property taxes they collect by more than 3 percent from year to year under a proposed amendment to the state constitution heard Feb. 27 by the Revenue Committee.

\"Sen.
Sen. Lou Ann Linehan<\/figcaption><\/figure><\/p>\n

LR8CA, introduced by Elkhorn Sen. Lou Ann Linehan on behalf of Gov. Pete Ricketts, would place the proposal on the November 2020 general election ballot. If voters approve it, the amendment would limit the total amount of property tax revenue raised by a political subdivision in any fiscal year to 3 percent greater than the amount raised the previous fiscal year.<\/p>\n

A political subdivision could exceed that limit by a specific amount only if a majority of legal voters approve in a special election. <\/p>\n

The limit would not apply to the property tax revenue needed to pay the principal and interest on a political subdivision\u2019s bonded indebtedness. <\/p>\n

Linehan said the measure is an attempt to slow spending by local governments, which rely heavily on property taxes to fund their operation. Controlling school spending is especially important if the Legislature increases state aid to public schools in an effort to reduce the state\u2019s overreliance on property taxes to fund public education, she said. <\/p>\n

\u201cIf we\u2019re going to step up to the plate and we\u2019re going to pick up a large portion of the funding for all schools,\u201d Linehan said, \u201cwe also owe it to the taxpayers \u2026 to make sure we get control on the spending.\u201d <\/p>\n

Ricketts testified in support of the resolution. He said limiting increases in property tax revenue is the only way to achieve sustainable tax relief. <\/p>\n

Coby Mach testified in support of the proposal on behalf of the Lincoln Independent Business Association. He said the amendment would not restrict political subdivisions from increasing their budgets using other sources of revenue, such as sales tax, occupation tax or federal grants. <\/p>\n

\u201cIn order for any property tax reduction proposal to make a lasting impact,\u201d Mach said, \u201cwe believe it must rein in property tax spending at the local level where the property taxes are actually levied.\u201d
\nLincoln city council member Roy Christensen testified in support of the resolution on his own behalf, saying it would enhance local control. <\/p>\n

\u201cFor most Nebraskans, they don\u2019t have the time to show up to the numerous budget meetings for their school, city, county and so forth,\u201d he said. \u201cWith LR8CA, the people can vote to override the 3 percent cap if they believe local government needs additional resources.\u201d<\/p>\n

Frederic Oltjenbruns also testified in support. Oltjenbruns said he and his family farmed near Ceresco until last year when they moved their operation to Missouri because they could not afford Nebraska\u2019s high property taxes. In 2017, Oltjenbruns said, he paid approximately $50,000 in property taxes on 585 acres in Nebraska. His property tax bill on 855 acres is Missouri last year was less than $1,200.<\/p>\n

\u201cI hope you guys can straighten this mess out before it goes from maybe the few of us to a landslide of farmers fleeing like refugees to other states,\u201d he said.<\/p>\n

Douglas Kindig, mayor of La Vista, testified in opposition to the proposal on behalf of the United Cities of Sarpy County. He said the 3 percent limit on property tax revenue increases would stifle growth in the fastest-growing county in the state.<\/p>\n

\u201cLimiting revenue growth not only hinders our ability to maintain the current service level and quality of public services,\u201d Kindig said, \u201cit will impede improvements and the expansion of basic services necessary for growth.\u201d <\/p>\n

Jack Moles testified in opposition to the resolution on behalf of the Nebraska Rural Community Schools Association, the Nebraska Council of School Administrators and the Nebraska State Education Association. He said LR8CA would give school districts little room to accommodate rising costs that are beyond their control, such as staff salaries, health insurance and the cost of meeting federal and state regulations. <\/p>\n

John Hansen, president of the Nebraska Farmers Union, also opposed the measure. If voters approve the amendment, he said, \u201cthe ceiling will become the floor,\u201d meaning local governments would raise their property tax requests to the maximum. <\/p>\n

Hansen also cautioned against placing a cap in the state\u2019s constitution because doing so would limit the Legislature\u2019s ability to change the cap if necessary. <\/p>\n

\u201cIf there is going to be some sort of cost control as a part of a [tax reform] package \u2026 the proper place for it would be in statute, and it should not be in the constitution,\u201d he said.<\/p>\n

The committee took no immediate action on LR8CA.<\/p>\n","protected":false},"excerpt":{"rendered":"

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