The Nebraska Farm Bureau has submitted a three-year plan to a state legislative committee calling for a reduction in property taxes.
Farm Bureau President Steve Nelson says Nebraska’s property taxes account for 45% of all taxes collected and in the first year their plan calls for cutting that to 40%.
Nelson says, “This would be done by reducing the ag land values formula from 75% to 65% and then directing additional dollars to the already-existing property tax credit program.”
Nelson says in the second year, the plan calls for removing all community colleges from the property tax rolls, reducing the personal property tax on ag commercial and ag industrial equipment and expanding the homestead exemption to all homeowners. He says the third year calls for broadening the tax base.
“We’re mostly talking about sales taxes that are on things that all consumers use,” Nelson says. “They’d be very broad based. The money raised from that would go directly to property tax relief. It couldn’t be used for any additional spending.”
Nelson says the property tax savings in the first year would amount to $160-million, with $300-million saved in the second year and more than $400-million in the third year and each year after.
By Jerry Oster, WNAX, Yankton