On Jan. 8, Governor Jim Pillen called for a 40% reduction in state property taxes in 2024. He is asking the Nebraska Legislature as well as chambers of commerce to partner in achieving that goal, stating it is a necessity for all Nebraskans.
“Property taxes are so out of whack, you don’t even need to own property to be adversely affected,” said Gov. Pillen. “We need to do this for the countless Nebraskans who have worked, raised a family, and educated their kids here, by giving them the opportunity to retire in Nebraska. Our current property tax structure is taxing lifelong Nebraskans out of their homes – it is unacceptable.”
Addressing high property taxes is the Governor’s top priority during the current legislative session.
“In 2023, state property taxes exceeded $5 billion. In the last six years alone, property tax collections skyrocketed $1.3 billion. We need transformational property tax reform to get us down to around $3 billion annually,” said Gov. Pillen.
The Governor convened a 40-person workgroup in July to study the issue of property taxes and home valuations. The group, made up of state senators, representatives from the Nebraska State Chamber of Commerce, the Lincoln and Omaha chambers of commerce, agriculture industry groups and others, all agreed it was not enough to keep property taxes level. A significant reduction was required.
“Nebraska is already the best place to live, work, and raise a family,” said Gov. Pillen. “In order to stay competitive with other low tax states, we need to reduce property taxes by 40%. This reduction will drive economic growth through workforce and new business development.”
Gov. Pillen wants to work with the Legislature to determine the right path forward. He made clear that any plan would incorporate a hard cap on county and city spending. The state, he said, would be leading by example.
“We will reduce state spending by 3% this fiscal year, followed by another 6% in fiscal year 2025, while ensuring that state services improve through efficiencies and technology,” said Gov. Pillen.
Proposals also include front-loading property tax credits instead of requiring taxpayers to claim them, to further provide state aid to schools and reduce state spending. It would also require expanding the state’s tax base.
“Everything is on the table. We must ignite this discussion,” said Gov. Pillen. “We must be bold and courageous in our pursuit of property tax reform, because we owe it to all Nebraskans.”