LINCOLN- The Legislature debated minor tax proposals on Tuesday while also speaking about the state's historically high taxes on property.

LB2, discussed on Tuesday, would give farmers and ranchers a small property tax break when funding school bond issues and would increase the state's property tax credit program by 3% a year. The bill paved way for a larger debate over the fairness of property tax credits, especially about whether the state is just putting 'Band-Aids' on the issue. Rural senators argued that it is unfair for people in rural towns to approve a school bond issue that requires farmers and ranchers to pay most of the bill. Rural Nebraskans already pay the bulk of property taxes in rural school districts and are in a voting minority. Urban senators say it is unfair to give farmers a break but not those who live in cities.

"Structurally, nothing is changing, because we are scared to do it," said Omaha Sen. Justin Wayne.

Nebraska currently ranks 48th in the nation for increasing state aid to fund local schools by replacing property tax.

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