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Nebraska property tax relief proposal gains ag support

A proposal to use income tax credits as a means of delivering property tax relief in Nebraska is gaining traction with some of the state’s ag groups.

Nebraska Farm Bureau delegates voted last week to support the concept, which is under consideration by state legislators.

The proposal was also discussed by Nebraska Cattlemen (NC) at their recent annual meeting. The group took no action, but NC’s vice president of legislative affairs Laura Field told Brownfield they are “intrigued” by the idea.

“We think there’s a lot of merit to it,” Field said. “Certainly looking at something that would bring together a different group of people. We’re not just talking about ag, we’re talking about a refundable income tax credit for all property tax payers—just with respect to those taxes you pay for schools.”

Field said there are concerns about what it would do to the overall state budget.

“On the other side of the equation is the tremendous hole it will blow in the state’s budget,” she says. “Knowing that you could also impact agriculture from the perspective of, would we lose a sales tax exemption, or would we see some of the relief that we’ve gotten to date go away?”

AUDIO: Laura Field

State Senator Steve Erdman of Bayard says he will introduce the plan in the upcoming legislative session.

“It will be an income tax credit, or refund, equal to 50 percent of the amount that you pay to your public school—your property tax that goes to the public school,” Erdman says.

As for the impact his plan will have on the state budget, Erdman says more spending cuts will be necessary to make it work.

“Agriculture is in dire straits. This property tax is eating our lunch and we’ve got to do something about it,” he says. “Cuts is where I want to go with this. That’s my idea and we have plenty of cutting to be done.”

There is also talk of a turning the property tax-income tax credit proposal into a ballot initiative if the legislature fails to provide property tax relief.

AUDIO: Steve Erdman