Proposal for 'missing year' of property tax relief heard

The Legislature’s Revenue Committee held a public hearing Wednesday on a proposal, LB81, to allow taxpayers to request a credit on the 2025 income taxes for the property taxes they paid last year.

The Legislature discontinued that credit in last year’s special session, in which lawmakers substituted a credit direct to local governments to reduce people’s property tax bills.

Critics say that ending the income tax credit amounts to a tax increase. Ward Greisen, of the group Nebraskans for Founders' Values, compared the current system to the old system, which he likened to Menards offering customers an 11% rebate on their purchases.

“Now with the change, it's like the state change(d) it to a sale price, right? You walk into the store and you get 11% off your sale price, and so you pay for a reduced product. Meanwhile, I've already paid for the product that I was promised a rebate. Only thing is, I can't find my rebate form anymore,” he said.

Jacobson argued that the state had simply substituted one form of property tax relief for another, while the bill is proposing an extension of the income tax credit that was abolished.

“The state has already paid once, and this bill, because it's got a $600 million fiscal note, is because the state's being asked to pay the second time,” he said.

Committee chairman Sen. Brad von Gillern asked Sen. Brian Hardin, the lead introducer of the bill how he would propose to pay for his proposal.

“The reality is that it does have to be paid for, and you will be one of 49 votes to either move this forward if it comes to the floor or not. How will you reconcile that with your vote, understanding that we currently have a $432 million deficit, which may change, and this would add to that?” von Gillern asked.

Hardin changed the subject.

“Well, and I got even more wonderful news earlier today as Chairman of HHS (Health and Human Services), of other challenges that are being handed to us from on high, federally, and so, we ain't seen nothing yet in terms of how we may need to reprioritize our lives as a state,” he said.

The committee took no immediate action on the bill.

Correction: an earlier version of this story, as well as the audio, misstated the name of Ward Greisen's group. It's Nebraskans for Founders' Values.

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