Steve Nelson, President Nebraska Farm Bureau[/caption]
The ballot initiative—Yes to Property Tax Reform—if successful, would provide a 50% refundable income tax credit to property owners, based on the amount they paid in property taxes. Because citizens would receive a check as part of this credit, the state would be forced to come up with $1.1 billion to provide the refundable income tax credits.
The Farm Bureau has committed $100,000 to the signature collection process, according to Nelson. The petition requires about 85,000 signatures by July 5. The ballot initiative would not affect the amount of funding school districts receive from local property taxes.
“If it’s successful and the state has to come up with $1.1 billion, the senators—the legislature—and the governor are going to have to figure out where that comes from and they don’t want to deal with that issue,” Rieker said.
As discussed at Monday’s forum, this ballot initiative mirrors LB 829, introduced by Senator Steve Erdman of Bayard.
A competitor bill such as LB 947--the Property Tax Cuts and Opportunities Act--focuses on property tax relief, income tax relief, and workforce development.
Other bills highlighting property tax relief remain in the revenue, education, or government committees and include LB 1000 (Public Facilities Construction and Finance Act bond elections), LB 1084 (Property Tax Request Limitation Act), and LB 1103 (minimum amount of state aid for each school district).
Any bill of property tax magnitude requires 33 votes from the Legislature.
Rieker remains optimistic something significant can be done because it is an election year and the ballot initiative may ignite some fear in state senators. He says it is a great climate for realizing that something needs to be done in terms of property tax relief. He encouraged forum attendees to strike while the iron is hot and put pressure on state senators.
“Our goal in this--and we work with a lot of different coalitions--our goal is not to increase the aggregate tax collections in the state. That’s not our goal. Our goal is for it to be revenue neutral. There are some different sources of revenue that need to be tapped to help pay for K-12 education. Because that’s the line share of who uses the property taxes. About 60%--on average across the state--about 60% of property taxes are used to fund K-12 education. Our goal is to tap different sources,” Rieker said.
Breaking down some of the numbers according to Bruce Rieker:
$3.4 billion total cost of K-12 Education across the state
$1 billion comes from state in the form of equalized/state aid to schools
244 districts in Nebraska, only 66 receive part of that $1 billion
178 districts do not receive that aid and are primarily funded by property taxes
BROKEN BOW—The pressure is on for the Nebraska Legislature when it comes to property tax relief. The Legislature is about half way through the session but if no property tax reform is passed, it is possible that a $1.1 billion initiative could end up on the November ballot.
Nebraska Farm Bureau President Steve Nelson and Vice President of Governmental Relations Bruce Rieker spoke to a group of individuals wanting answers to the ongoing property tax question. The Custer County Farm Bureau hosted the event at the Cobblestone where Rieker described four legislative bills that address property tax relief.
“We want to adequately fund schools but we don’t want them to be paid for with property taxes to the level they are now,” Rieker said.
Steve Nelson said the ideal solution would be for reform to come from a legislative approach, but other options are on the table. Reform for Nebraska’s Future has taken steps to form a committee for collecting signatures and bring the issue to the people via a potential ballot vote.
[caption id="attachment_1390862" align="alignright" width="300"] Steve Nelson, President Nebraska Farm Bureau[/caption]
The ballot initiative—Yes to Property Tax Reform—if successful, would provide a 50% refundable income tax credit to property owners, based on the amount they paid in property taxes. Because citizens would receive a check as part of this credit, the state would be forced to come up with $1.1 billion to provide the refundable income tax credits.
The Farm Bureau has committed $100,000 to the signature collection process, according to Nelson. The petition requires about 85,000 signatures by July 5. The ballot initiative would not affect the amount of funding school districts receive from local property taxes.
“If it’s successful and the state has to come up with $1.1 billion, the senators—the legislature—and the governor are going to have to figure out where that comes from and they don’t want to deal with that issue,” Rieker said.
As discussed at Monday’s forum, this ballot initiative mirrors LB 829, introduced by Senator Steve Erdman of Bayard.
A competitor bill such as LB 947--the Property Tax Cuts and Opportunities Act--focuses on property tax relief, income tax relief, and workforce development.
Other bills highlighting property tax relief remain in the revenue, education, or government committees and include LB 1000 (Public Facilities Construction and Finance Act bond elections), LB 1084 (Property Tax Request Limitation Act), and LB 1103 (minimum amount of state aid for each school district).
Any bill of property tax magnitude requires 33 votes from the Legislature.
Rieker remains optimistic something significant can be done because it is an election year and the ballot initiative may ignite some fear in state senators. He says it is a great climate for realizing that something needs to be done in terms of property tax relief. He encouraged forum attendees to strike while the iron is hot and put pressure on state senators.
“Our goal in this--and we work with a lot of different coalitions--our goal is not to increase the aggregate tax collections in the state. That’s not our goal. Our goal is for it to be revenue neutral. There are some different sources of revenue that need to be tapped to help pay for K-12 education. Because that’s the line share of who uses the property taxes. About 60%--on average across the state--about 60% of property taxes are used to fund K-12 education. Our goal is to tap different sources,” Rieker said.
Breaking down some of the numbers according to Bruce Rieker:
$3.4 billion total cost of K-12 Education across the state
$1 billion comes from state in the form of equalized/state aid to schools
244 districts in Nebraska, only 66 receive part of that $1 billion
178 districts do not receive that aid and are primarily funded by property taxes
Steve Nelson, President Nebraska Farm Bureau[/caption]
The ballot initiative—Yes to Property Tax Reform—if successful, would provide a 50% refundable income tax credit to property owners, based on the amount they paid in property taxes. Because citizens would receive a check as part of this credit, the state would be forced to come up with $1.1 billion to provide the refundable income tax credits.
The Farm Bureau has committed $100,000 to the signature collection process, according to Nelson. The petition requires about 85,000 signatures by July 5. The ballot initiative would not affect the amount of funding school districts receive from local property taxes.
“If it’s successful and the state has to come up with $1.1 billion, the senators—the legislature—and the governor are going to have to figure out where that comes from and they don’t want to deal with that issue,” Rieker said.
As discussed at Monday’s forum, this ballot initiative mirrors LB 829, introduced by Senator Steve Erdman of Bayard.
A competitor bill such as LB 947--the Property Tax Cuts and Opportunities Act--focuses on property tax relief, income tax relief, and workforce development.
Other bills highlighting property tax relief remain in the revenue, education, or government committees and include LB 1000 (Public Facilities Construction and Finance Act bond elections), LB 1084 (Property Tax Request Limitation Act), and LB 1103 (minimum amount of state aid for each school district).
Any bill of property tax magnitude requires 33 votes from the Legislature.
Rieker remains optimistic something significant can be done because it is an election year and the ballot initiative may ignite some fear in state senators. He says it is a great climate for realizing that something needs to be done in terms of property tax relief. He encouraged forum attendees to strike while the iron is hot and put pressure on state senators.
“Our goal in this--and we work with a lot of different coalitions--our goal is not to increase the aggregate tax collections in the state. That’s not our goal. Our goal is for it to be revenue neutral. There are some different sources of revenue that need to be tapped to help pay for K-12 education. Because that’s the line share of who uses the property taxes. About 60%--on average across the state--about 60% of property taxes are used to fund K-12 education. Our goal is to tap different sources,” Rieker said.
Breaking down some of the numbers according to Bruce Rieker:
$3.4 billion total cost of K-12 Education across the state
$1 billion comes from state in the form of equalized/state aid to schools
244 districts in Nebraska, only 66 receive part of that $1 billion
178 districts do not receive that aid and are primarily funded by property taxes 
