Nebraska Governor Jim Pillen, in a release, has convened a special legislative session to discuss the possibility of reducing local property taxes by 40-50% on 30 July 2024.
This significant property tax reduction plan is part of Pillen’s comprehensive proposal, The Nebraska Plan.
“In Nebraska, property tax collections have accelerated at a rapid rate. In a few short years, they will reach more than $1 million a day, or $6 billion a year,” the release states. “Nebraska is among states for highest property taxes in the nation and the governor has made tax reform a central goal of his administration.”
The funding for this initiative would primarily come from expanding the sales and use tax base through the elimination of over 100 sales tax exemptions currently in place.
Additionally, Pillen said he would finance this property tax cut by implementing a 7.5% tax on advertising services, raising certain excise taxes, and removing existing exemptions for agricultural and manufacturing machinery and equipment. These items would then be subjected to a reduced tax rate of 2%, rather than the standard rate of 5.5%.
Many of these changes will bring Nebraska better in line with what is assessed by other states. The release also mentions the governor wants to Cut waste in state government and diverts those savings to the property tax plan. To date, $400 million in savings has been identified, and the state will continue to tap into federal funding where appropriate to further ease the burden on state funding.
