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Throughout the year, various advocacy groups and think tanks offer opportunities for senators and legislative staff to hear from different experts’ perspectives on policies in Nebraska and nationally.
Last week, I had the opportunity to attend this year’s Platte Institute’s Legislative Summit. The Platte Institute is an advocacy group and think tank headquartered in Omaha which primarily advances policies that promote free markets and individual liberty.
At this event, national experts presented thoughts on Nebraska’s current tax competitiveness. According to the 2026 State Tax Competitiveness Index from the Tax Foundation, Nebraska ranked 46th in the country in property taxes,but its higher rankings for corporate and sales tax place it at 22nd overall. Neighboring Wyoming and South Dakota hold the top two overall spots, respectively.
It is important to note Nebraska’s poor ranking in property taxes does not reflect the true tax burden to taxpayers since property tax credits and education funding help offset some of the cost. Nonetheless, the ranking indicates Nebraska’s very poor competitiveness nationally when it comes to property taxes and structural issues with the current system. Nebraska’s overall national ranking is also brought down by the fact we are only one of five states with an inheritance tax. In response, various experts and state senators had the opportunity to offer their perspective on where the Legislature should go when it comes to tax policy next year. Speaker of the Legislature John Arch said in his remarks that the current property tax system in the state is currently unstainable. He noted that the state would need to raise an additional $250 million in revenue each year just to keep the property tax burden flat, let alone reduce it. With what will likely be another very tight budget year on the horizon, it will be difficult to find that additional money in a manner that can secure the 33 votes filibuster-proof majority. Speaker Arch pointed to hard caps on political subdivisions like counties, cities, and school districts as a possible alternative solution to reign in local spending which causes higher property taxes.
Additionally, Senator Rob Clements highlighted the need for Nebraska to repeal the inheritance tax, a policy which he argues deters people from retiring in this state.Earlier this year, his latest proposal to reduce the inheritance tax, LB468, stalled on the floor after failing to secure enough votes to break a filibuster. In his remarks, Senator Clements indicated he would be introducing legislation next year to reduce or repeal the inheritance tax.
Meanwhile, several experts recommended that Nebraska consider other structural changes to the state’s property tax system. Their recommendations included an automatic rollback of property tax levies when valuations increase and improving the Truth-in-Taxation (pink postcard) law that was passed a few years ago to move up the public hearings earlier in the budget process. One expert also noted a broad sales tax or consumption tax can offset reductions in property taxes which could help Nebraska be more competitive.
I invite you to let me know your thoughts.My Capitol number is (402) 471-2801 while my email is bdekay@leg. ne.gov. My address is: Sen. Barry DeKay, District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.
