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The current legislative session officially concluded on day 60, which was Thursday, Aug. 13. We concluded the session by hearing remarks from the six term limited and outgoing senators and passing several bills through final reading.

One bill we passed was LB 1107, a comprehensive package of property tax relief and business incentives.

The focus on property tax reform this past session began as the Revenue Committee’s LB 974. It was a combination of foundation aid for all school districts in Nebraska, valuation decreases for all property owners and restrictions on school spending and property tax increases. It could not garner the votes necessary to stay on the agenda. Before the Legislature’s COVID-inspired temporary adjournment March 10, plans were made to attach a heavily-amended version of 974 to a different bill, LB 1106.

During the early summer months, I was part of a group of 10 senators, assembled by Speaker Scheer, to work on a compromise of property tax reform, business incentives and matching funding for a Department of Defense project, in collaboration with the University of Nebraska Medical Center, called the Next project. These talks were not particularly fruitful.

After reconvening July 20, LB 1106 made it to the floor for first-round debate. Like its predecessor, LB 974, it could not garner the necessary support. Shortly thereafter, the new replacement for the state’s expiring business incentives came to the floor. This bill, LB 720, which also contained Next project funding, was held up by myself and others who felt property tax relief could only be successful if it was part of a package deal with incentives. So it appeared to be a stalemate.

The speaker then assembled a group of seven senators, of which I was a member, for a last ditch effort at putting together a ‘grand bargain’ compromise on these items. Eventually, we ended up with provisions of the amendment to 1107 that we passed Aug. 13. It includes the provisions of my priority bill, LB 930, which provides that the current $275 million in the Property Tax Credit Fund, currently subject to the whims of the Appropriation Committee, is now guaranteed by statute. And as per my LB 930, it also requires any amounts that voters may direct to that fund pursuant to the gambling ballot proposals will be in addition to the $275 million minimum. In addition to those dollars, LB 1107 also provides for a new Property Tax Incentive Fund, which will provide $375 million a year within five years, and growing incrementally beyond that, for a refundable income tax credit based on the property taxes paid. LB 1107 also includes the new Imagine Act, the 10-year replacement for our expiring business incentive program. Finally, the package provides for a future commitment by the state of $300 million dollars to the Next project. The Next project dollars are to be made available only after the new income tax credit fund grows to $375 million per year.

Was the package deal represented by LB 1107 perfect? No. But no compromise is perfect. What it does represent for property taxpayers is a substantial measure of property tax relief.

Does more need to be done? Yes. And as long as I’m in the legislature, I will continue to work on the issue of property tax relief.