Nebraska Gov. Jim Pillen threatened to call lawmakers back for a special session if they failed to pass a bill to ease soaring property taxes. Some lawmakers welcomed the idea of a special session, acknowledging that the current bill could not be fixed in time. Pillen followed through on his threat, planning to issue a proclamation for a special session to address the property tax crisis. He also mentioned the possibility of changing how Nebraska allots its Electoral College votes to a winner-take-all system, a move that is supported by Republicans ahead of the upcoming presidential election.
The bill backed by Pillen initially sought to raise the state’s sales tax to 6.5% and expand the sales tax base to include items like candy, soda, pet grooming, and veterinary services. However, by the time it reached the final round of debate, the sales tax increase had been stripped away, leaving only a fraction of the property tax savings sought. The bill was a key part of Pillen’s plan to reduce property taxes by 40%, cutting $2 billion from the $5.3 billion in property taxes collected in 2023. Soaring property prices have led to increased tax bills for homeowners and farmers, with residential property assessed at nearly 100% of market value, compared to 75% for agricultural land.
Opposition to the bill came from both liberals and conservatives. Democrats criticized it as one of the largest tax increases in Nebraska history, while conservatives called for more reductions in spending instead of new taxes. Despite the criticism, Pillen emphasized the need for property tax relief and called for a special session to address the issue. Nebraska would join several other states that have held or are expected to hold special legislative sessions this year. Virginia, New Mexico, Mississippi, and Louisiana have all recently called for special sessions to address various legislative issues, from budget agreements to public safety initiatives.
In his address to lawmakers, Pillen expressed his determination to work towards solving the property tax crisis, even if it meant calling multiple special sessions. The soaring costs of housing and land have made it difficult for many residents to afford homeownership, while escalating property taxes have forced some elderly residents on fixed incomes out of their homes. The ongoing debate over property tax relief has highlighted the challenges of balancing the tax burden and finding solutions that benefit all taxpayers. As Pillen prepares for a special session, the focus remains on addressing the property tax crisis and finding a viable solution that can garner support from lawmakers.
