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Nebraska property tax reduction bill signed into law
Nebraska lawmakers closed out their special session this week with a property tax reduction bill signed into law by Gov. Jim Pillen.
Nebraska Farm Bureau President Mark McHargue tells Brownfield lawmakers left out a potential sales tax on ag inputs to offset the property tax reduction.
“It was just poor tax policy. It was pyramiding,” he says. “We wanted to work hard and so we did get that pulled out of the bill so it wasn’t part of it.”
According to the 2024 Preliminary Property Tax Valuation estimates, 57 of Nebraska’s 93 counties had double digit valuation increases. McHargue says it’s created challenges for Nebraska farmers.
“You look at possibly your income this year, certainly on the grain side of the category, we are well below break even and we’re still going to have to pay the property tax bill, regardless of whether we make any money or not,” he says.
The bill provides refundable income tax credits to offset school property taxes and caps taxing authority by cities and counties year-over-year. The income tax credits were previously available, but only if taxpayers had filed for them.
McHargue says Nebraska Farm Bureau will work with legislators in 2025 on developing property tax relief legislation.
Legislators were brought in for a special session in late July. Gov. Pillen has stated he will not call any special session this year, instead promising to wait until the 2025 legislative session to continue additional property tax relief discussions.
