Nebraska Cattlemen Welcomes Passage of Historic Property Tax Relief
Nebraska Cattlemen (NC) has consistently and aggressively advocated for property tax relief and reform for Nebraska’s livestock producers. Today, NC secured a major victory as state policymakers took the first step by providing widespread and historic relief for all Nebraskans.
LB 1107, which advanced through the final round of debate, represents a “grand compromise” that addresses business tax incentives, the University of Nebraska Medical Center “NeXt” Project, and most importantly, long-awaited property tax relief.
“NC members’ voices have been at the forefront of the negotiating table throughout the 2020 session, particularly during these final 17 days. Devastating floods, extreme cattle market volatility, and crippling property taxes have wreaked havoc on our state’s top industry. Nebraska’s cattlemen and women could not afford to wait any longer for relief.
Today’s action is the beginning of finally reversing the disproportionate burden placed on the backs of agricultural property owners in Nebraska. We are thrilled to finally achieve meaningful relief directly from the state, especially in a year frustrated by a worldwide pandemic. Going forward, our members remain committed to enacting long-term, systematic reform of Nebraska’s property tax structure – particularly on the over-reliance on property taxes to support K-12 public education,” said Ken Herz, Nebraska Cattlemen President.
LB 1107 would deliver property tax relief for agriculture through the following:
- Creates a new Property Tax Refundable Income Tax Credit based on the amount of K-12 taxes paid. This new tax credit would be frontloaded with $125 million and grow to $375 million annually after 5 years.
- Beefs up the existing Property Tax Credit Fund by setting a minimum requirement of $275 million per year, plus any tax revenue generated from the gambling petition on the November ballot (if passed).
- When fully implemented, LB 1107 reduces property taxes paid to schools by nearly 15% with a minimum of $650 million per year in relief.
The work towards property tax relief doesn’t stop here! This effort is an important next step in NC’s goals of property tax reform for our members.