You are here: Home / Archives for property taxes

Nebraska legislature tackles tax issues

April 1, 2013 By Leave a Comment

A bill working its way through the Nebraska legislature would create a commission of state lawmakers to study possible reforms in the state tax system. 

LB613 creates a Tax Modernization Commission, which would study whether state taxes should be shifted or otherwise changed to make the state’s tax system more competitive with other states.

Property taxes need to be part of that discussion, says Nebraska Farm Bureau’s Jay Rempe.

“It’s expected that that discussion will include all taxes in Nebraska, including property taxes,” Rempe says. “I think senators have heard from a lot of people across the state that that needs to be part of it.”

A separate bill, LB96, would exempt repair or replacement parts for ag machinery and equipment from the state sales tax.

“It really is a competition issue for equipment dealers near the borders of Nebraska, because no other—with the exception of Wyoming—all the other states do no levy a sales tax on repair parts,” Rempe says. “So our dealers along the border are losing a lot of business and there’s a potential loss of jobs there.”

AUDIO: Jay Rempe (1:28 MP3)

Filed Under: Events/Organizations, News Tagged With: , , ,

Nebraska’s governor backs off on tax proposals

February 18, 2013 By Leave a Comment

Nebraska Governor Dave Heineman is backing off of his proposal to eliminate the state’s income tax and do away with most business and agriculture sales tax exemptions.

Heineman has asked the sponsors of those bills in front of the Legislature’s Revenue Committee to kill the proposals.  At the same time, he is asking committee chair Galen Hadley to work on alternatives that might include property tax relief.

Heineman says that, after listening to individuals and representatives of the state’s manufacturing and agricultural businesses, it was apparent they were uncomfortable with the plan—especially doing away with the sales tax exemptions.  Those exemptions apply to agricultural inputs such as farm machinery, fertilizer, seed and chemicals.

Heineman hopes that the Revenue Committee will come up with a plan to lower income tax rates, eliminate sales tax exemptions, provide property tax relief and lower sales tax rates.

Filed Under: Events/Organizations, News Tagged With: , , ,

Nebraska’s governor softening on sales tax proposal

February 14, 2013 By Leave a Comment

Nebraska Governor Dave Heineman appears to be softening on the issue of eliminating sales tax exemptions on agricultural inputs, a proposal that has come under fire from Nebraska agricultural groups. 

At the Governor’s Ag Conference in Kearney this week, Heineman met privately with many of the state’s ag leaders.  In a later interview with Brownfield, Heineman said of those ag input sales tax exemptions, “eventually I think those may be off the table”.

“I wouldn’t say it’s off the table yet—but I think that may be where it’s headed,” Heineman said.

“I think we were all a little uncomfortable with the input side of what we’re doing.  But right now everybody’s throwing out ideas.  Let’s get in the big room here eventually, decide which ones should be exempt from sales tax for example—which ones shouldn’t be—which other services ought to be part of the equation.”

And Heineman says he’s open to throwing property tax relief into the mix as well.  That’s something ag groups have been clamoring for.

In January Heineman proposed dropping the state income tax and offsetting that loss of revenue by eliminating some of the sales tax exemptions which have been granted over the years.  Many of the production inputs that farmers and ranchers use, including farm equipment, fertilizer and chemicals, are currently exempt from the sales tax.

AUDIO: Gov. Dave Heineman (1:50 MP3)

Filed Under: Crops, Dairy, Events/Organizations, Livestock, News Tagged With: , ,

Indiana farmland property taxes to go up

February 1, 2013 By Leave a Comment

Indiana’s farmers will see another increase in farmland property taxes.  In December, Indiana’s Department of Local Government Finance announced the base rate of farmland.  In his podcast, Larry DeBoer, professor of agricultural economics at Purdue says the base rate has doubled in the last seven years.  “The base rate of farmland will rise from $1,630 to $1,760 for 2013-2014,” he says.  “Back in 2007 – taxes were paid on a base rate of $880 per acre.”

DeBoer says the base rate is the starting point for calculating property taxes on farmland.  “The base rate is multiplied by a soil productivity factor which varies from 0.5 to 1.28 based on how well the soil type grows corn,” he says.

And right now the soil productivity factor is actually being debated in the General Assembly.  DeBoer notes those factors are also scheduled to rise – but legislative bills have been proposed to cancel this change.

He says higher prices combined with low-interest rates and rising land values equal higher farmland property taxes.

Filed Under: Crops, Farm Sales, Human Interest, News Tagged With: , , ,

Nebraska Farm Bureau awaits details of governor’s tax proposal

January 16, 2013 By Leave a Comment

Nebraska Governor Dave Heineman’s proposal to eliminate the state income tax is raising some eyebrows in agricultural circles.

To offset that loss of revenue, Heineman proposes to eliminate some of the sales tax exemptions which have been granted over the years.  Many of the production inputs that farmers and ranchers use, including farm equipment, fertilizer and chemicals, are currently exempt from the sales tax.

The president of Nebraska Farm Bureau, Steve Nelson, says he looks forward to hearing more of the details of the governor’s proposal—and then discussing what’s best for Nebraska and what’s best for agriculture.

“One of the things that has kept Nebraska so strong, during the recession that the country has been in, is a strong agriculture,” Nelson says, “and so we’d be very concerned about doing things that might negatively affect the ability of agriculture to continue to be strong and to be the support that it’s been for Nebraska’s economy over the years.”

And Nelson adds that property taxes need to be part of the tax discussion.

“Our members are interested in all of the different taxes that they pay and that includes property tax which has, over the years, been a priority for Farm Bureau—to consider how much property tax agriculture pays,” Nelson says.

“So we believe property tax ought to be part of the discussion as well—and we certainly would look forward to having those discussions.”

Nebraska’s individual and corporate income tax generates 2.365 billion dollars annually; just over two billion from individual income taxes and 270 million from corporations.

Sales tax exemptions granted over the years—not just agricultural exemptions, but all exemptions—now total five billion dollars a year.

The Nebraska Radio Network contributed to this story.

AUDIO: Steve Nelson (1:50 MP3)

Filed Under: Events/Organizations, News Tagged With: , , , ,

Property tax reform a top priority in Iowa

January 15, 2013 By Leave a Comment

Iowa Farm Bureau will continue to push for property tax reform in the 2013 Iegislative session.

Farm Bureau president Craig Hill says the primary objective of property tax reform should be to reduce the property tax burden on all classes of property.  He points out that property taxes have increased by over two billion dollars since the year 2000, an increase of over 75 percent.

“As lawmakers address issues such as commercial property tax reform, Iowans need to be assured that any reform affecting one class of property would not bring a shift to other classes of property,” Hill says. “In addition, reasonable property tax growth limitations are needed so property tax collections do not continue to outpace the economy and family wages.”

Another major issue for Farm Bureau is the funding of infrastructure improvements.  Hill says more and more local governments are turning to bonding as an alternative source of revenue to pay for deteriorating rural roads.  He says Farm Bureau still believes that an increase in the state fuel tax is the most equitable and fair method of funding road improvements.

Filed Under: Events/Organizations, News Tagged With: , , ,

Nebraska Farm Bureau meets in Kearney

December 4, 2012 By Leave a Comment

Nebraska Farm Bureau is holding its annual meeting in Kearney.   Taxes and water are big issues being discussed by delegates.  Brownfield visited with Jay Rempe, vice-president of governmental relations with the organization.

AUDIO: Jay Rempe (7:41 MP3)

 

Filed Under: Featured, Special Reports Tagged With: , , , ,

Water, taxes key issues for Nebraska Farm Bureau

November 29, 2012 By Leave a Comment

Water and taxes will be among the key issues discussed at next week’s Nebraska Farm Bureau annual meeting in Kearney.

The Nebraska legislature will likely have several tax reform proposals before it in January, including measures that examine both income and inheritance taxes.  Farm Bureau president Steve Nelson says property tax relief and reform need to be part of the mix.

“Our members have some pretty strong positions on property tax and continue to look at the burden of property taxes that is there—that’s always a top priority,” Nelson says.

“We have long believed that property tax relief and reform should be part of any major changes in our state’s tax structure and our delegates will further discuss what they would like to see done in that area.”

Management of Nebraska’s water resources will also be discussed. Nelson says the ongoing drought has created some new challenges in that area.

“There are certain parts of the state where there are concerns with declining groundwater tables,” he says. “Our delegates will consider a number of resolutions that examine the way in which we manage both ground and surface water and the integrated management of both.”

Farm Bureau’s annual meeting is December 3rd and 4th in Kearney.

AUDIO: Steve Nelson (5:50 MP3)

Filed Under: Events/Organizations, News Tagged With: , , ,

Iowa Farm Bureau president discusses 2012 legislative session

May 18, 2012 By Leave a Comment

Iowa Farm Bureau president Craig Hill of Milo, Iowa says they were disappointed that the state legislature didn’t address the state’s deteriorating infrastructure during the recently concluded legislative session.  But he says they were pleased with steps taken to protect property taxpayers and to increase conservation funding.

AUDIO: Craig Hill (4:57 MP3)

 

Filed Under: Feature Programs, Rural Issues Tagged With: , , , ,

Iowa Farm Bureau pleased with many legislative actions

May 10, 2012 By Leave a Comment

Despite the Iowa legislature’s failure to agree on overall property tax reform, Iowa Farm Bureau Federation (IFBF) president Craig Hill says there were many positives to be found in this year’s legislative session.

They include the combined 27-million dollar increase to the homestead property tax credit and ag land and family farm property tax credit, which Hill says will provide for direct property tax relief.  And Hill says Farm Bureau is pleased the legislature reinstated the statewide dollar cap to ensure that property tax contributions to the mental health system remain limited and controlled. 

Those efforts, along with fully funding the legislature’s K-12 education commitments, provide protection for property taxpayers, says Hill.

Another high priority issue for IFBF which won passage in the 2012 legislature was the Agriculture Protection Bill.  That’s the measure that creates penalties for those who fraudulently gain access to a farm with the intent to cause harm.  It creates new penalties for those who make false statements to gain access to a farm, or misrepresent themselves on an employment application to hide their intended misconduct or purpose.

The measure also penalizes organizations or persons who aid or abet someone who misrepresented facts to gain access to a crop or livestock farm.

Hill says Farm Bureau was also pleased to see increased conservation and water quality cost-share funding for programs which are currently experiencing a backlog of unfunded projects. 

One of IFBF’s priority issues not addressed by this year’s legislature was improvements to Iowa’s infrastructure.   “Many of Iowa’s roads and bridges are in need of significant structural improvements, and we continue to fall further behind every year,” Hill says. “Clearly, this problem will not go away without additional funding; that’s why Farm Bureau members have identified a fuel tax increase as the most equitable, feasible funding method.”

Filed Under: Events/Organizations, News Tagged With: , ,
« Older Posts