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Nebraska’s tax system is often compared to a stool, with property, income and sales taxes each making up one of the three legs. But lawmakers say the balance has tipped too far toward property taxes, and several proposals this legislative session aim to shift that weight.“In an ideal world, across the board, it would be one-third, one-third and one-third,” said Sen. Tom Brandt of Plymouth. “And we’ve got a long ways to go before we get there.”Brandt said property taxes now account for roughly half of all taxes paid by Nebraskans. Supporters of reform argue the system has become unsustainable for homeowners and farmers.“The whole point is to stop the bleeding, quit forcing people out of their homes and create tax stability and predictability,” said Sen. Bob Andersen of Omaha.Andersen has prioritized a constitutional amendment, LR292CA, that would change how property taxes are calculated. The measure would establish two separate values for property: a “fair market value” set by county assessors, and a “taxable market value” based on the purchase price of the property. Under the proposal, the taxable value would not change until the property is sold.“I think it’s foundational,” Andersen said. “I think it’s the first step.”Jon Cannon, the head of the Nebraska Association of County Officials, said he’s wary of the proposal and says counties rely heavily on property tax revenues. Cannon said Andersen’s plan is like Prop 13 in California, adding that it ended in disaster for the state.”I don’t think anyone saying, ‘Well, gosh, we’d like to go to California because of their sound fiscal policies that they have in that state,'” Cannon said.Cannon pushed back on the assumption by lawmakers that there’s a property tax crisis in the state.“It’s not that the tax itself is an evil,” Cannon said. “It’s just a vehicle to get where you need to go. The question is: how do we want to fund local government?”If approved by the Legislature, Andersen’s proposal would go before voters on the November ballot.Another proposal, introduced by Brandt, would cap increases in property tax levies at 2 percent plus growth—a much stricter limit than the current cap, which uses the State and Local Consumption Expenditures index plus growth.“The relief that the state gives will never ever keep up,” Brandt said. “So we’ve got to slow the spending down on the other end.”Property taxes in Nebraska are levied by local governments, not the state. The largest share of that revenue goes to school districts, with about a fifth going to counties. Cannon says draconian levy caps would jeopardize local control and leave counties making hard decisions. “The things that we do, people don’t want less of it,” Cannon said. “They want more roads, they want more bridges.”County advocates warn that reducing property tax revenue without replacing it could force tough budget decisions across the state.“I will go through any budget for any county in the state, line by line, show me where the bloat is,” Cannon said. “Take me to any county in the state and show me the closet that has the bags of money that are marked ‘Waste, Fraud and Abuse.’ And then we’ll have a conversation.”Make sure you can always see the latest news, weather, sports and more from KETV NewsWatch 7 on Google search.NAVIGATE: Home | Weather | Local News | National | Sports | Newscasts on demand |
Nebraska’s tax system is often compared to a stool, with property, income and sales taxes each making up one of the three legs. But lawmakers say the balance has tipped too far toward property taxes, and several proposals this legislative session aim to shift that weight.
“In an ideal world, across the board, it would be one-third, one-third and one-third,” said Sen. Tom Brandt of Plymouth. “And we’ve got a long ways to go before we get there.”
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Brandt said property taxes now account for roughly half of all taxes paid by Nebraskans. Supporters of reform argue the system has become unsustainable for homeowners and farmers.
“The whole point is to stop the bleeding, quit forcing people out of their homes and create tax stability and predictability,” said Sen. Bob Andersen of Omaha.
Andersen has prioritized a constitutional amendment, LR292CA, that would change how property taxes are calculated. The measure would establish two separate values for property: a “fair market value” set by county assessors, and a “taxable market value” based on the purchase price of the property. Under the proposal, the taxable value would not change until the property is sold.
“I think it’s foundational,” Andersen said. “I think it’s the first step.”
Jon Cannon, the head of the Nebraska Association of County Officials, said he’s wary of the proposal and says counties rely heavily on property tax revenues. Cannon said Andersen’s plan is like Prop 13 in California, adding that it ended in disaster for the state.
“I don’t think anyone saying, ‘Well, gosh, we’d like to go to California because of their sound fiscal policies that they have in that state,'” Cannon said.
Cannon pushed back on the assumption by lawmakers that there’s a property tax crisis in the state.
“It’s not that the tax itself is an evil,” Cannon said. “It’s just a vehicle to get where you need to go. The question is: how do we want to fund local government?”
If approved by the Legislature, Andersen’s proposal would go before voters on the November ballot.
Another proposal, introduced by Brandt, would cap increases in property tax levies at 2 percent plus growth—a much stricter limit than the current cap, which uses the State and Local Consumption Expenditures index plus growth.
“The relief that the state gives will never ever keep up,” Brandt said. “So we’ve got to slow the spending down on the other end.”
Property taxes in Nebraska are levied by local governments, not the state. The largest share of that revenue goes to school districts, with about a fifth going to counties. Cannon says draconian levy caps would jeopardize local control and leave counties making hard decisions.
“The things that we do, people don’t want less of it,” Cannon said. “They want more roads, they want more bridges.”
County advocates warn that reducing property tax revenue without replacing it could force tough budget decisions across the state.
“I will go through any budget for any county in the state, line by line, show me where the bloat is,” Cannon said. “Take me to any county in the state and show me the closet that has the bags of money that are marked ‘Waste, Fraud and Abuse.’ And then we’ll have a conversation.”
Make sure you can always see the latest news, weather, sports and more from KETV NewsWatch 7 on Google search.
NAVIGATE: Home | Weather | Local News | National | Sports | Newscasts on demand |
