Group proposes petitions to cut property tax rates, limit valuation increases

Two new petitions to reduce property taxes and limit future valuation growth were announced Monday by Advocates for All Nebraskans.

One petition would change state statute to cut the taxable value of property in half while keeping actual valuations steady.

Currently, agricultural and horticultural land is valued for taxation at 75% of its actual value. The initiative would reduce that to 37.5%.

The other petition would amend the Nebraska Constitution to cap annual property valuation increases at 3% or less.

“Our petition effort is about providing immediate tangible relief for the people of Nebraska,” said Eric Underwood, the former chair of the Nebraska Republican Party and AFAN agent. “This will also be an opportunity for those who choose to sign the petitions to empower the people of Nebraska. Literally, people are one signature and one vote away from having bold, significant property tax relief.”

Underwood said the petition drives would be among the largest and most unprecedented the state has seen. He also stressed the grassroots nature of the effort.

“We did not discuss with the governor, and we did not coordinate efforts with any state senators,” Underwood said. “We believe that there would be an erosion of any relationships that would occur there if we had engaged them first.”

Nebraska State Board of Education member Kirk Penner said it’s time to end school districts’ reliance on property taxes for the bulk of their funds.

“We are challenging local governments and taxing authorities to use the next 18 months to prepare and engage with their constituents to find new efficiencies and sustainable funding models,” he said.

Penner said a separate ballot initiative involving school funding will be announced soon.

The proposals announced Monday are the latest in a long line of recent attempts to lower Nebraska’s property taxes.

Last summer, Pillen called a special legislative session aimed at reducing property taxes by an average of 50%.

Following several weeks of debate, a slimmed-down tax package ended up reducing property taxes by around 3% through the expansion of an existing property tax credit. Instead of having to file for a credit later, the reduction now shows up on taxpayers’ bills when they are sent out.

For petition organizers, the progress made was not enough.

Doug Fitzgerald, a radio personality who hosts Drive Time Nebraska, shared stories of homeowners faced with sharp increases in their property valuations, leading to higher property taxes.

“One of my listeners of the show said this, ‘Our property taxes are awful. I protested twice for the last five years. Spreadsheets, entire analysis on our neighborhood. No improvements, no relief given. Our home has gone up nearly 40% in the last seven years.’ How were they supposed to make it?” Fitzgerald said.

According to the Tax Foundation’s 2025 State Tax Competitiveness Index, Nebraska is ranked 45th for its property taxes. The state is in the middle of the pack – 24th – for its overall tax competitiveness.

Additional analysis from Tax-Rates.org found that Nebraska is tied for the fourth-highest median property tax as a percentage of home value.

The petitions announced Monday are not the first attempt to change taxation in the 2026 midterm elections.

Earlier this summer, the organizers behind the 2024 EPIC (eliminate property, income and corporate taxes) option launched a second effort.

If enacted, it would add new section to the Nebraska Constitution that states, “No governmental entity in the state of Nebraska shall collect property tax, income tax or inheritance tax beginning Jan. 1, 2028.”

It would be up to the Nebraska Legislature to determine how to find replacement revenue.

Underwood said the EPIC initiative would not conflict with the petitions his group filed.

“We don't believe that they are counters whatsoever,” he said. “We do believe that they can be complementary, or, if anything, parallel.”

To get on the November 2026 ballot, the petition to change state statute to halve taxable property values would require approximately 90,000 signatures by next July.

The proposed constitutional amendment to place a 3% cap on annual property valuation increases would require around 130,000 signatures.

If passed by voters, the changes would take effect Jan. 1, 2027.