The Nebraska Farm Bureau (NEFB) is backing legislation that would provide significant tax reform and major property tax relief for Nebraskans. Legislative Bill (LB) 388 is a key piece of a broader tax reform package working its way through the Nebraska Legislature.
“Whether you own a home, farm, or business, Nebraskans have been vigilant in asking the Legislature to provide property tax relief. LB 388 is a critical part of doing just that. We appreciate the leadership that’s been demonstrated to move this bill and the broader package forward. As floor debate nears, we wanted to be very clear that Nebraska Farm Bureau and its members support this effort and we fully expect the members of the Legislature to do the same,” said Mark McHargue, NEFB president.
LB 388 achieves many of the objectives long sought by the organization to rebalance Nebraska’s three-legged tax stool. Today, property taxes levied in Nebraska have topped $5 billion, while sales tax collections account for just over $2 billion. The bill would help deliver property tax reductions by replacing property tax funds with sales taxes dollars generated through elimination of some sales tax exemptions, with the potential for an increase in the state’s sales tax rate through a trigger mechanism based on state revenues. The bill also includes provisions that seek to slow property tax collections by political subdivisions while still maintaining and respecting local control.
“We want Nebraska to grow. For that to happen we need to fix our tax policy that’s allowed property tax to be a major cost of doing business in the state. Addressing property taxes is also part of the solution to our state’s workforce issues, as property taxes are clearly driving up the costs of home ownership for our current and potential workforce. LB 388 and the work being done on the broader tax package to fix our property tax problem will raise the tide for all ships in Nebraska; rural and urban. We look forward to working with the Legislature to make historical changes for the betterment of all Nebraskans,” said McHargue.
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Categories: Nebraska, Business, Government & Policy