Albion Senator Tom Briese tabled Bill 987 Thursday to limit the growth in property tax levied on school districts.
“Legislature has taken significant steps in recent years to provide property tax relief,” said Briese, “including increasing the property tax credit fund and creating and funding the Nebraska Property Tax Incentive Act credit in LB1107. But more work is needed. “
Briese said while inflation averaged about 1.75% per year over the past 10 years, wage growth has been less than 2% per year, and property taxes have increased by about 4.45%.
“And now we have rising real estate, business and agricultural valuations that continue to drive up property taxes,” Briese said. “The status quo is unacceptable and that’s why I introduced LB987.”
Similar to Briese’s LB408 last year, the bill would introduce a 3% tax cap for school districts in Nebraska. However, unlike the previous calculation, LB987 allows for inflation. It also allows for increased taxation to fund necessary health, safety and accessibility measures, and allows the cap to be lifted for two out of three years as long as the annual increase is no more than 3% over any 3 year period.
LB987 would also allow for a popular vote to remove the cap.
“Escalating property taxes continue to curb economic growth in our state,” Briese said. “And we have to do something about it.”