Lawmakers resumed debate July 22 on a major property tax measure after it was modified to address concerns raised regarding an earlier proposal. <\/p>\n
As introduced by Norfolk Sen. Jim Scheer, LB1106 would have repealed outdated sales tax provisions. A pending Revenue Committee amendment would replace the bill with a modified version of the proposal contained in the committee\u2019s LB974, which remains on general file after debate in February. <\/p>\n
Elkhorn Sen. Lou Ann Linehan, the committee\u2019s chairperson, said Nebraskans pay some of the highest property taxes in the country because the state relies too heavily on property taxes to fund public education.<\/p>\n
Like the original proposal, Linehan said, the amendment would reduce property valuations for school tax purposes over three years\u2014thereby reducing the amount of property taxes they collect\u2014while simultaneously increasing state aid to schools via a new foundation aid component. <\/p>\n
\u201cWe as a state need to continue to properly fund our schools,\u201d she said. \u201cHowever, we also need to help businesses stay in business by lowering their property taxes, help our ag producers stay in business and help our homeowners stay in their homes.\u201d <\/p>\n
Among other changes to the state\u2019s school funding formula, Linehan said, the amendment would limit schools districts\u2019 basic allowable growth rate to 2 percent. She said some districts had opposed the previous proposal because it would have tied budget growth to the inflation rate.<\/p>\n
Linehan said the amendment would address some school districts\u2019 concerns by allowing them to carry forward a portion of their unused budget authority to future years.<\/p>\n
She said the amendment also would reduce school districts\u2019 special building fund levy from the current 14 cents per $100 of taxable valuation to 6 cents. School districts also would have to receive voter approval before building a new school building, Linehan said.<\/p>\n
Sen. Tom Briese of Albion supported the amendment, saying it represents a \u201cgenerational opportunity\u201d to remedy the state\u2019s property tax crisis. He said the amendment would increase state school aid to each district while limiting property tax increases. <\/p>\n
He said the proposal allows schools to reasonably grow their budgets while allowing their tax asking authority to increase by 2 percent plus the value of new property. <\/p>\n
\u201cI just don\u2019t think we\u2019re asking anything that\u2019s unreasonable of our partners in the education community,\u201d Briese said.<\/p>\n
Sen. Mike Groene of North Platte also supported the amendment, saying that Nebraskans are demanding property tax relief. He said the proposal would introduce long-term stability to the state\u2019s school funding formula and provide schools with at least 15 percent of their costs through foundation aid. <\/p>\n
Groene said some school administrators oppose the proposal not because it would underfund schools but because it would reduce the amount of property taxes they could collect. <\/p>\n
\u201cIf you\u2019re going to wait around … for the education establishment to support what we must do for our citizens,\u201d he said, \u201cit will never happen.\u201d<\/p>\n
Also in support was Plymouth Sen. Tom Brandt, who said rising agricultural valuations have resulted in high property taxes in rural Nebraska for years. Recent large residential valuation increases mean homeowners in urban areas will see higher property tax bills too, he said.<\/p>\n
\u201cThis is not a rural problem only,\u201d Brandt said. \u201cThis is now a Nebraska problem.\u201d <\/p>\n
Sen. Wendy DeBoer of Bennington opposed the bill and filed a motion to bracket it, which effectively would end debate on it this session. She said the Legislature should find a way to reduce property taxes but that the coronavirus pandemic has changed the state\u2019s economic outlook since lawmakers debated the previous proposal earlier this year.<\/p>\n
\u201cI don\u2019t think we have the money for this bill,\u201d DeBoer said. \u201cIf we give more money from our state budget to schools in an attempt to lower property taxes, it\u2019s got to come from somewhere.\u201d<\/p>\n
Sen. Sue Crawford of Bellevue also opposed the measure. She said the state\u2019s school funding formula directs state equalization aid to districts where needs are greater than resources. Many educational leaders are concerned about the proposal because the state often has not met the requirement to fully fund that equalization aid, Crawford said.<\/p>\n
By dedicating up to 15 percent of state tax revenue to foundation aid, she said, the proposal could make it even more difficult for the state to meet its obligation to Nebraska\u2019s neediest students in the future. <\/p>\n
Gering Sen. John Stinner said he supports property tax relief but that the proposal \u201cties the Legislature\u2019s hands\u201d by requiring the state to make up school districts\u2019 revenue shortfall created by limiting the amount of property taxes they could collect. <\/p>\n
If state revenue growth is flat or negative due to the pandemic\u2019s economic effects, he said, the Legislature could be required to cut other budget items in order to fully fund the state school aid proposed in the amendment. <\/p>\n
\u201cI\u2019m not sure the revenue\u2019s going to be there to support all the services that provide for the well being of our citizens,\u201d Stinner said.<\/p>\n
After three hours of general file debate, the Legislature recessed without voting on DeBoer\u2019s motion, the amendment or the bill. Per a practice implemented by Speaker Jim Scheer, the sponsor of a bill that is facing a potential filibuster must demonstrate sufficient support for a cloture motion before the measure will be scheduled for additional debate.<\/p>\n","protected":false},"excerpt":{"rendered":"
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