Filibuster lengthens finish line for Nebraska’s property tax relief special session

State senators are currently in a session to debate property tax relief measures, and have moved a scaled-back version of Gov. Jim Pillen’s proposal to its third and final round of debate, which will be held Tuesday. 

Legislative Bill 34 would ensure that property taxpayers benefit from an existing tax relief program, while capping property tax collections by cities and counties. Two budget bills accompanying the plan, LB 2 and LB 3, would provide roughly $139 million of the $185 million necessary for the plan. 

Pillen called the special session July 25 with the goal of fulfilling his promise to cut property taxes 50%. But over the ensuing weeks, his plan was weaned down to one that offers no new tax relief, and would offset about 3% of property taxes statewide that only some property owners would benefit from. Proponents of the plan has argued it is the “absolute minimum” lawmakers can do to help taxpayers. 

Out of 81 bills and 24 constitutional amendments introduced, the only proposal that isn’t part of Pillen’s plan that has progressed to floor debate is Legislative Resolution 2CA, brought by State Sen. Tom Brandt of Plymouth. 

The constitutional amendment would allow owner occupying their homes to be assessed at a different rate than other types of property, giving future lawmakers more ways to provide tax relief to homeowners. If it passes the Legislature, it would also require voter approval to be added to the Nebraska Constitution.

The measure was up for its second round of floor debate Saturday, but it was jeopardized by a filibuster launched by Sen. Justin Wayne of Omaha. Despite the fact that said he Wayne supports LR 2CA, he filibustered in retribution for senators, including Brandt, for not supporting a proposal he made Friday to eliminate sales taxes on residential electricity. 

Wayne stopped filibustering after roughly 90 minutes, but by that point, some supporters of the constitutional amendment had left, and the filibuster was taken over by opponents. The measure didn’t have the 33 votes necessary to overcome a filibuster, so supporters instead opted to delay further debate until Tuesday. 

LR 2CA also lost some momentum after the Nebraska Farm Bureau pulled its support, sending senators a memo on Saturday explaining that the measure could raise taxes on non-residential property. Brandt referred to the data they cited in the memo as “fantasy numbers.”

If the constitutional amendment advances Tuesday, then that would mean its final round of debate would take place Thursday. Although, senators could adjourn the session sine die at any point, and have already considered such motions this session. 

Even if LR 2CA passes, it is unlikely the measure would be on the ballot this year. In its first floor debate, the proposal was amended to allow the measure to bypass the current deadline to submit ballot measures and be added to the November ballot if it receives 40 votes or more in its final round. 

Brandt acknowledged Saturday that his proposal doesn’t have enough supporters for that, which means if it passes, it couldn’t be considered by voters until 2026. 

The special session could extend even further if senators opt to consider other proposals. Speaker of the Legislature John Arch of La Vista said once debate on the governor’s plan concludes, it’s up to lawmakers to decide how the rest of the session goes. 

Several ideas are still on the table that would either cut taxes or increase state revenues to balance tax cuts. Among them are bills to legalize online sports betting and cannabis, and a bill to eliminate all state and local taxes and replace them with a broad-based consumption tax. 

It’s unclear whether lawmakers have the appetite to extend the special session beyond the schedule the speaker laid out. When Wayne was filibustering earlier this week to urge lawmakers to consider alternatives to provide higher tax relief, several senators indicated they would be willing to stay longer to debate other ideas. 

But others were more skeptical. Sen. Danielle Conrad of Lincoln cautioned that lawmakers should stick to consensus items and refrain from pivoting to “untested, reckless ideas,” and Sen. John Fredrickson of Omaha said Friday that he doubted any alternative plans would have the support necessary to overcome a likely filibuster. 

“I don’t see another way to 33 votes,” he said.