Property tax relief stalling

Thursday, March 15, 2018

McCOOK, Neb. — With 16 days left, Nebraska state senators are still struggling to come up with a property tax relief bill.

It’s been a challenge getting bills out of committee and onto the floor, said Dist. 44 State Senator Dan Hughes this morning at the McCook Chamber of Commerce Legislative conference call. A bill that would give a refundable income tax credit, equal to a percentage of property taxes paid during the year, to individuals owning agricultural or horticultural land, failed to even get five votes to advance out of committee, Hughes said. Bills stuck in committee is a strong indicator that if finally advanced to a hearing, there will be plenty of discussion, he said. “If you have that much trouble in committee....there will be debate on the floor.”

Finding an equitable way for the state to fund schools is an issue lawmakers are still grappling with, he said. A solution could possibly come with LB 44, that would require online retailers without a physical presence in the state to collect and remit sales tax, if their gross revenues exceeds $100,000 and have 200 or more transactions. If approved by lawmakers, a potential revenue stream of millions of dollars could be directed toward property tax relief, Hughes said.

Coming up with a budget is a huge priority for the Legislature, he continued, with amendments still pending on bills that address cuts to the University of Nebraska system and on Title X funding.

The biggest debate this week on a budget amendment proposal centered on language concerning the use of Title X funding, Hughes said. Nebraska receives funds from the federal Title X program that are used to subsidize clinics that provide reproductive and preventive health services, including the diagnosis and treatment of sexually transmitted diseases, cancer screenings and family planning services. The federal grant funds dispersed by the state through the program cannot be used to perform abortions.

An amendment included in LB944 would prohibit federal Title X funds from being paid or granted to an organization that performs, assists, provides counseling in favor of or refers for abortion services. Hughes said the amendment would have language that requires clinics to have a separate and distinct accounting of funds if using Title X funding. Lawmakers eventually voted 38-6 to advance LB944 to select file.

Other bills this past week the Unicameral considered included:

* LB 42, that raises the age for children to be secured in a child safety seat to age 8, up from age 6, was advanced to select file, the first stage of debate, by 36 to 3.

* LB158, that ensures juveniles have an attorney when appearing in court, was filibustered by Sen. Mike Groene of North Platte and failed to advance. Hughes said he did not support the bill. “Everyone has a right to an attorney...but forcing the county to provide a juvenile attorney would be an unnecessary expense,” he said, adding this was the sentiment expressed in conversations he’s had with judges in Western Nebraska.

* Hughes own bill, LB 760, was advanced out of committee. The bill addresses a prior bill passed in 2016, that created the Volunteer Emergency Responders Incentive Act and provided an income tax credit for volunteer emergency responders, rescue squad members, and firefighters that serve a city, village, or rural or suburban fire protection district.

This bill inadvertently left out volunteers serving a county and LB 760 creates a mechanism for them to apply for the income tax credit that was originally intended.

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  • I hope the on line sales tax bill advances. I hope the bill has a provision that the revenue is shared with the state and local governments issuing a current sales tax. This additional revenue would help the state freeze or reduce income tax and local governments to reduce property tax. We need to remember that a reduction in income tax helps all income taxpayers while a reduction in property tax helps those with large amounts of property. Low income tax rates also helps attract new business and industry to the state. I understand that Senator Hughes is himself a large property owner and represents Ag producers. He also represents all those that also are in his district that are non-farmers. For him to say that he was hoping the bill would advance some the funds could help reduce property tax without addressing income tax, seems self serving.

    -- Posted by dennis on Thu, Mar 15, 2018, at 2:35 PM
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