By voting 34-11 to end debate on House Bill 34, lawmakers approved a very different version of a property tax relief plan than the one originally proposed by Governor Jim Pillen.

The senators worked through various tax packages before reaching a “consensus” that included only three components.

– “Frontloaded” income tax credits for property taxes paid so that they appear first on annual property tax returns. About 50% of these eligible credits were not claimed.

– Expanding school tax credits to a total of $750 million in the next fiscal year, with additional increases in subsequent years.

– Limiting the annual increase in the authority to collect property taxes by local and county governments to the state and local inflation index, or to 0% during periods of deflation. Public safety services and the work of county attorneys and public defenders would be exceptions, as would voter approval and emergency situations.

As the Nebraska Examiner reports, to fund the new plan, lawmakers will consider two bills introduced by the Budget Committee that involve budget cuts totaling about $139 million (LB 2) and increased fees (LB 3).

The debate on these two measures will begin on Wednesday at 9 a.m. LB 34 is expected to be debated again later this week.

The article in the Nebraska Examiner can be found here