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On Feb. 26, the Revenue Committee voted to advance LB 408, as amended by AM 371, on a 7-1 vote. The amended version of the bill would limit the annual increase in property tax askings to no more than 3%, with some exceptions.

The sponsor of the bill, Sen. Tom Briese of Albion, commented on its advancement. “Property tax relief requires a multi-pronged approach. One approach must be to place reasonable restrictions on property taxes. And that’s what this bill does.”

Briese continued, “This bill is made necessary by our unreasonable, unsustainable over-reliance on property taxes to fund local government. While inflation has chugged along at a 1.75% annual rate the last 10 years, property taxes have increased at a rate 250% faster. It’s unconscionable for us to allow this to happen.”

Being advanced by a committee is the first step to passing a bill in Nebraska’s unique one-house legislature. Once advanced, it can have a chance at being considered by the full legislature on General File - the first of three rounds of debate needed to pass legislation, after which it must be approved by the governor.

LB 408, in its original form, mirrored Sen. Lou Ann Linehan’s LR 22CA, a constitutional amendment brought on behalf of Governor Ricketts. The original LB 408 and LR 22CA would have capped property tax askings, with an exception for actual growth of the tax base and an allowance for a public vote to override the limit.

The amended LB 408 includes the same items, but with some key differences that were negotiated in the Revenue Committee to accommodate competing concerns, according to Briese.

The amended version will allow for spikes in revenue needs, will discourage unnecessarily taxing to the 3% limit and will sunset in six years.

Briese concluded, “The changes we made in committee reflected an accommodation of competing concerns. It’s a compromise that will serve Nebraskans well.”