Working to reduce property taxes

In 1966, the good people of Nebraska had grown tired of paying high property taxes. They collected the needed signatures on a ballot initiative and they put the question on the November ballot. By a margin of 50.89% to 49.11% the people of Nebraska passed a constitutional amendment that did away with the “State Property Tax.”

At that point in time, the state property tax was nearly the only source of revenue for all forms of government in Nebraska, including the state government. When the first session of the 50th Legislature met the following January in 1967, they began the session without any revenue to run the State of Nebraska. The newspaper editorial pages at the time were filled with predictions of doom. Many described the situation as a “crisis” for Nebraska.

The Republican Governor, Norbert "Nobby" Tiemann, introduced two bills that created the state income and state sales tax. Opposition to the income tax was so fierce, the hearings for the bills took days as the line of people to testify stretched around the block. For the first time in history the Nebraska Republican Party did not endorse a sitting Republican governor for re-election. They endorsed his primary challenger instead. The resulting political battle during the primary so wounded Governor Tiemann, he lost the general election to the Democrat J. James Exxon.

Today, fifty-six years later, we find ourselves in a similar situation. High property taxes are strangling the #1 industry in our state and people are sick of it.

Family farms and ranches are going bankrupt trying to pay their property taxes. People and businesses are fleeing Nebraska or not moving here in the first place because of it. In the seven years I have had the honor of representing the 43rd District, the legislature has not had the votes to pass substantial property tax relief.

This year, the Legislature passed a major education funding reform with LB 243. It created an Education Future Fund starting with $1 billion, with more to be added in the years to come. It increased public school funding by over $300 million. Schools that didn’t qualify for state aid before (the vast majority) will now get $1,500 per student. The Legislature also implemented a limit on annual school spending growth to 3%.

I believe since the legislature has finally passed a bill that provides more revenue for public schools, Nebraskans should expect school districts to ask them for less revenue in the form of property taxes. As Nebraskans receive their annual property tax valuations, they should keep this in mind. The deadline for protesting their property valuation in the 30th of June.

Please contact my office with any comments, questions or concerns. Email me at tbrewer@leg.ne.gov, mail a letter to Sen. Tom Brewer, Room #1423, P.O. Box 94604, Lincoln, NE 68509, or call us at (402) 471-2628.