Sen. DeKay hoping rural senators can come up with some workable property tax ideas

Dist. 40 R eport Sen. DeKay hoping rural senators can come up with some workable property tax ideas

Dist. 40 Report

July 4th is Independence Day in America. This day commemorates the ratification of the Declaration of Independence by the Second Continental Congress on July 4, 1776. I hope that you are able to enjoy time with your friends and family. As we take the day to celebrate our country’s independence, we should remember the many brave men and women who have fought and sacrificed so that we may enjoy the gift of freedom. I also want to make known that July 1, 2025 is the implementation date for one final provision of LB34, a bill that was passed in last year’s special session. LB34 included three main components: (1) frontloading the property tax credits for school taxes paid, (2) increasing the amount the state contributed to existing property relief programs, and (3) setting property tax revenue caps for cities and counties. The first two portions went into effect last year, and the effects would have shown up on the December property tax statements for many people. The last provision is now fully in effect meaning this is the first year cities and counties are capped in the amount of property taxes they can request. That cap is currently set at the greater of 0% or inflation plus actual growth, plus certain allowances for public safety expenses.

Many of you will have started receiving your property tax valuations in the mail. I have heard from many constituents they are receiving valuations often past the rate of inflation. Valuations are based on the current market value as of Jan. 1.

The valuations set the property tax base. Political subdivisions are also starting their budgeting process at this time of year and will finalize their budget and tax requests in the next few months.

Property taxes are levied and assessed locally. You may consider paying attention to or attending the budget hearings of your local political subdivisions: counties, cities, schools, NRDs, and ESUs. July and August are the time of year when many of the local budget hearings happen; those hearings are opportunities to engage with your local elected ocials and voice your opinions about local government taxation, spending, and operations.

Last year’s special session and this year’s legislative session had the end result of Nebraskans ultimately getting little property tax relief. The pink post cards that will soon be arriving in your mailbox will likely be evidence of that.

I will be collaborating with rural senators this summer to help work on a property tax relief plan to emphasize the interests of rural Nebraska.

In my mind, it is naïve to think stopping income tax cuts, as was suggested at times this year during floor debate by various Lincoln and Omaha senators, will solve property taxes. No plan will solve the problem overnight, but I’m hopeful local leaders and groups will continue to work with state senators to put together a proposal for meaningful progress on addressing property tax relief. We seem to keep spinning our wheels with the same solutions repeatedly being proposed without any longterm solution. The Legislature ought to keep all alternatives open to solve this persistent problem.

I invite you to share your thoughts.

Feel free to call my oce at (402) 471- 2801 or email: [email protected].