On Monday, the Nebraska state legislature headed toward a potentially crucial vote on Tuesday on cutting property taxes.
The House Finance Committee voted 6-1 on Monday to send the latest version of Gov. Jim Pillen’s pushed property tax cut plan to the full House for debate. The latest version eliminates several key tax increases that were intended to help the state pay for school costs currently covered by local property taxes.
Among the proposals removed from the bill are taxes on the purchase of farm and commercial machinery and equipment. The maximum school tax, currently at $1.05 per $100 of value, would also be reduced more slowly. Instead of falling to 25 cents next year, it would first fall to 40 cents, then 35 cents, and finally 30 cents.
Pillen had said his plan to have the state cover school operating costs immediately and reduce that levy to zero would have cut the average property tax bill in half. Senator Lou Ann Linehan, chair of the Finance Committee, was asked how much the cut would be under the new plan.
“So if we pass this this year, the average citizen will have to pay less on their property tax bill next year; I don’t know the exact amount,” she said.
Further information from the special session of Parliament:
Senators continue to discuss taxes
Special session debate: Should there be a special session at all?
Parliament considers budget cuts in special session
Slimmed down version of property tax cuts proposed
Marijuana, municipal aid for property tax relief proposed
Education Committee considers changes to school funding
Senator Jana Hughes, who had advocated a gradual reduction in the tax, was satisfied with this aspect but did not want to pass judgment on the overall plan.
“I don’t have an opinion until I look at it, although I’m glad we’re slowly realising that we need to do this gradually,” she said.
Linehan also said she did not know if she had the 33 votes needed to overcome a filibuster and advance the bill, but she estimated she currently had about 31 votes.
Speaker John Arch said he would schedule debate on the bill for Tuesday and intends to keep it running until the vote.
