Following the signing of LB243 by Governor Jim Pillen, Steve Hanson, President of Nebraska Cattlemen released the following statement:
“Nebraska Cattlemen is proud to have played a key role in securing additional property tax relief for hardworking Nebraskans. Removing the property tax levy authority for community colleges is a direct result of the work of the Nebraska Cattlemen Taxation working group. This legislation builds upon existing relief and will continue to provide relief for all Nebraskans. He continued, “Nebraska Cattlemen is grateful for the collaboration of the Revenue Committee and other coalition members to build this package that touches all Nebraskans. We commend Governor Pillen for his unwavering support of tax relief and reform.”
The Nebraska Property Tax Incentive Act (LB1107) was passed by the One Hundred and Sixth Nebraska Legislature in 2020 to provide an additional funding mechanism for property tax relief.
During the One Hundred and Seventh legislative interim, Nebraska Cattlemen leaders worked with Senators to identify efforts to expand property tax relief and identified property taxes paid to community colleges as a key area of focus.
LB873 was brought forth during the second half of the One Hundred and Seventh Legislature to amend LB1107 by increasing income tax credits available for property taxes paid to local schools at $548 million and boosting the total to $561 million for 2023. Additionally, LB873 adjusted LB1107 by including an additional $201 million in relief for property taxes paid to community colleges. These adjustments equate to tax savings for property taxes paid to community colleges on top of the refundable income tax credits for property taxes paid to K-12 schools.
LB 243 was introduced in 2023 to increase existing property tax relief. LB243 modifies LB1107 by eliminating the allowable growth cap of 5% and allowing the fund to grow at the maximum amount of credits allowed in the prior year increased by the allowable growth percentage. This legislation adds $275 million of additional funds to the Property Tax Credit Fund and adds an allowable growth rate in FY 2030. Finally, this legislation adds a 3% spending cap on Nebraska’s K-12 school districts.