LINCOLN- On Thursday, Nebraska Governor Jim Pillen officially revealed his long-awaited property tax proposals, which included a major tax credit program instead of reducing school district tax rates. State Senator Lou Ann Linehan of Elkhorn introduced Legislative Bill 1 on Governor Pillen's behalf as the head of the Revenue Committee. Instead of the previously pitched three-part levy reduction, the bill presented an extensive property tax credit program.

Pillen and his team of lawmakers are staying committed to his goal of cutting property taxes in half. The plan is to reduce school tax rates progressively until the state can absorb the entirety of the local district property taxes, but schools could still collect property taxes through voter-approved bonds or for two building-related funds. Under this bill, the state would adjust current tax relief programs and offer a new credit exclusive to schools instead of placing caps on general fund rates.

Nebraskans will also see tax credits that are proportionate to their property ownership. Opponents of the bill have proposed that the credits will only recycle money back to taxpayers with no substantial cuts or return on investment. Many new ideas were presented during the first day of the special legislative session, and the following bills outline how the state plans to make up for lost property tax revenue with increased sales taxes.

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