Lawmakers in Nebraska are making one final effort during this legislative session to offer some relief from property taxes.
Senators are looking at a proposal that would create $100 million by eliminating sales tax breaks on 18 items and increasing duties on tobacco-based products.
Subscribe to our NewslettersThey only have nine days left until they adjourn sine die.
"I simply want everyone in Nebraska to understand that next year, property taxes, according to the average of recent years, will increase by $283 million," Senator Tom Brandt informed his fellow legislators.
This is why he and multiple senators have developed a proposal aimed at reducing some of the discomfort.
"If we enact this bill today, we are scarcely staying afloat," Brandt stated.
Legislative Bill 170 , with an amendment, Would eliminate sales tax exemptions on items Brandt refers to as "luxury goods and services," including pet grooming, limousine services, dry cleaning, and private jet charters.
This legislation would impose taxes on sodas and energy drinks as well as increase duties on vapes, cigars, and cigarettes.
The $100 million raised would be channeled directly toward reducing property taxes.
"What we're doing isn't about increasing sales taxes or introducing new types of taxation. Instead, our focus is on simplifying the tax code," Brandt explained.
Nevertheless, similar to the special session held during the summer of 2024, attempting to offset property tax cuts by adjusting other taxes remains a difficult proposition.
"I somewhat believed that our state was financially conservative, which is why I’m puzzled about considering such a significant tax hike in this legislation," stated State Senator Machaela Cavanaugh.
Other senators said it would benefit large landowners and shift the burden to everyday Nebraskans.
"Efforts aimed at offering possible property tax relief that isn’t specifically targeted and doesn't particularly aid large, wealthy landowners are questionable," according to State Senator George Dugan.
Other senators pushed back.
Senator Mike Jacobson pointed out that we’re discussing average Nebraskans who seem to be leasing private planes, using limousine services, and covering lobbying expenses.
"That doesn’t seem typical of an average Nebraskan to me; after all, we’re reducing their property taxes,” Jacobson stated. “Indeed, during our campaigns, each one of us encountered this single concern repeatedly—everyone mentioned that their property taxes were too high.”
Nevertheless, even a few conservative senators are worried that funds will go solely towards property tax relief rather than being directed into the general fund.
And it fails to tackle the issue of property taxes.
"Legislation aside, this proposal doesn’t bring about real change; instead, it ensures money keeps flowing to the upper part of the barrel. To be honest, we also have a leak at the bottom of the barrel,” stated State Senator Brad von Gillern.
Realizing they lack sufficient support for passing the legislation, advocates stated they plan to propose an additional amendment to eliminate all exceptions. This would result in increasing only the taxes on vapes and cigars, along with raising the cigarette tax by $1 rather than 72 cents.
"It will solely pertain to nicotine legislation today," Brandt stated.
If the bill manages to stay alive, Brandt mentioned they might consider which services they could reintroduce during the next phase.
"we're ready to take that step. we're prepared to discover a resolution right here," brandt stated.
Legislators are continuing their work into the night and may reach a voting stage to conclude discussions by approximately 8:30 p.m.
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