[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6304076,"mediaKeyId","2469170-24048c5e6eb9422b86213206c9930d1c","parentId",2469170,"title","Senate revenue panel hears bill to cap annual property-tax bill increases at 3% or inflation","audioSeconds",3279,"startMs",178000,"endMs",3457000,"viewUrl","/Search/View?dp=1&key=2469170-24048c5e6eb9422b86213206c9930d1c&start=178&end=3457","thumbnailUrl","https://assets.pipeline.soar.com/2469170-24048c5e6eb9422b86213206c9930d1c/thumbnail_178000.jpg","articleUrl","/articles/6304076/Nebraska/Senate-revenue-panel-hears-bill-to-cap-annual-property-tax-bill-increases-at-3-or-inflation","mediaUrl","https://secure.pipeline.soar.com/6304076-3ef98567bd5fbee647ba92350f098dc2/orig.mp4?Expires=1771213576&Signature=di84vuFVnvuFhvZ~wuvvoo7q1TDoF39C-gVMPu5oikLowYV-ZqJjX6TC3MBaA4iHxLeWFl8GC7rd39aa9k4ADO3vMXdr-9Mrc9wEyFkxIhfM1ilaCN~WeLeNfifxrytTxD5cBexLZmZmYQ6XIDFIR6vS~IxvjAtqrkGJbK~-eH3RxV4vXy8q7xDDHOueDtelUrMSfu5~541zNuU~JdPKmdFyziGzs5zTh1WWXHXXqm7cLr1l4hUCZdcL2tENloWr8gjoorpeKXw83uyfGEhYYty304p5E4pZu5bjom~6MYo~0C2yrRK5twgARaLEfpG3vrFN~UeIF1Tpfg33uDE5Qw__&Key-Pair-Id=KUT5TJCACFTXG","author","Nebraska Legislature","date","2025-02-27T00:00:00Z","article","Senator Bob Anderson, sponsor of LB 424, told the Revenue Committee that the bill would cap annual increases in an individual property owner’s property-tax bill at the lesser of the current rate of inflation or 3 percent, a limit he said is needed to stop rising assessments from forcing Nebraskans from their homes. \"We need to stop punishing people for simply owning a home,\" Anderson said during his introducer remarks.

The bill would limit the yearly change a homeowner or business sees on their tax bill, regardless of increases in assessed valuation beneath that top-line bill, Anderson said. \"If the first year your taxes were $10,000, next year's going to be $10,300,\" he said, describing predictability as the bill's central aim.

Why it matters: supporters said high and uneven assessment increases have produced \"sticker shock\" for many taxpayers and harmed housing affordability and small businesses. Opponents — including county officials, municipal associations, school superintendents and other local entities — said the proposal would create legal and practical problems for Nebraska’s property-tax system, could shift costs or revenue unpredictably across parcels and political subdivisions, and in some cases would reduce local governments’ ability to fund essential services.

Supporters’ arguments: Doug Kagan of Nebraska Taxpayers for Freedom said Nebraska lags other states on assessment and levy reforms and urged adoption of a cap tied to a CPI index; he recommended using a Midwest urban CPI. Alan Seyvert, also representing Nebraska Taxpayers for Freedom, warned that current assessor processes can leave some individual parcels exposed to extreme valuation jumps and said a cap tied to allowable revenue growth would need safeguards to protect individual homeowners.

Opponents’ arguments and technical concerns: John Cannon, executive director of the Nebraska Association of County Officials, argued LB 424 raises constitutional and equalization concerns under Nebraska’s uniformity requirements. Cannon walked the committee through a simplified numerical example to show how capping the tax increase on an individual parcel could force recalculation of levy rates and produce unintended shifts of the tax burden between parcels.

Lynn Rex of the League of Nebraska Municipalities said LB 424 would layer a new cap on top of existing caps (including the limits embodied in LB 34 and municipal levy limits), making compliance \"unworkable on its face\" for many smaller local governments and urging the legislature to seek a single, reconciled cap rather than multiple overlapping limits. Jason Buckingham, superintendent for Ralston Public Schools, and Gary Kubicek of the Norris Board of Education said the bill could reduce school districts’ state aid under the TEOSA formula because state aid calculations assume local capacity to raise revenues; they urged holding the bill until interactions with the state aid formula are resolved. Dean Edson of the Nebraska Association of Resource Districts said the bill would create the wrong incentive for entities that use multi‑year, project‑based budgets and could force them to \"take the maximum amount every year.\"

Committee discussion focused on several implementation details that are not specified in LB 424 as introduced: which CPI index would be used (several testifiers suggested a Midwest urban CPI), how the cap would interact with existing levy limits and bond or other authorized overrides, how political subdivisions would prioritize or reconcile combined levy requests that would exceed the capped amount, and whether the measure creates constitutional equalization problems. Senator Jacobson and other members repeatedly asked about the mechanics of levy recalculation and how a consolidated cap on the taxpayer’s bill would be administered by counties and local levying authorities.

Fiscal and scale context: committee members cited estimates that consolidating allowable increases across all political subdivisions could imply $240 million to $300 million a year in additional state funding would be required to hold taxes flat statewide — a sum the state has not pledged to provide. Multiple representatives of cities, schools and special districts said LB 424 as drafted does not specify how that gap would be filled.

Outcome and next steps: the hearing concluded with Senator Anderson saying he would work with committee members and stakeholders on unresolved technical issues. No committee vote or formal action on the bill was recorded in the hearing.

Ending note: proponents framed LB 424 as protecting homeowners and small businesses from volatile valuation-driven tax increases; local officials and school representatives urged the committee to address constitutional equalization concerns, state-aid interactions and practical mechanisms for levy recalculation before advancing the measure.

","mediaType","Video","parentTitle","Revenue Committee - 2/27/2025","oneSentenceSummary","Senator Bob Anderson introduced LB 424, a proposal to cap annual increases in individual property-tax bills at the lesser of the rate of inflation or 3 percent, saying the change would give homeowners and small businesses predictable property-tax bills and prevent valuation-driven \"sticker shock.\"","taxTitle","2025 Legislature NE, Nebraska","taxId",77675,"location","Nebraska","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6304070,"Revenue Committee hears proposal to let Nebraska 529 (NEST) pay K–12 tuition; sponsors and treasurer back expansion, education groups split",2247,3513000,5760000,"/Search/View?dp=1&key=2469170-24048c5e6eb9422b86213206c9930d1c&start=3513&end=5760","https://assets.pipeline.soar.com/2469170-24048c5e6eb9422b86213206c9930d1c/thumbnail_3513000.jpg","/articles/6304070/Nebraska/Revenue-Committee-hears-proposal-to-let-Nebraska-529-NEST-pay-K12-tuition-sponsors-and-treasurer-back-expansion-education-groups-split","https://secure.pipeline.soar.com/6304070-230a43bc18324a234ed63dda1692159f/orig.mp4?Expires=1771213576&Signature=gTsgv5MrD4c4UBXGKJLuAJsnlhzAl29ch1l8hB047efYQDxvSIe294rmiu5RDXi9ua~1dOvgB~Uh8~6jAJpS1sbL393bkJVoVv-n9tgt2b4vkboQz-KXigN~G0taeRy7bT54PsArRDcTT41jnCZtBBfo3kB68CQHi0ICru2escbJPlqPjKzArJvSsYmuk9IhO4dQfmg~y5eKDjb7Pns64djPKh8B2HBFw7GRw0LkIAj8r1lSvgTjx6SizKmmXwdAwmZ98Jq0ggpHb3FZiuP0VD-tt7~7bki5BZmT8FhOWYYS~fWUTkXCjlJwBS5AJ3cCguN5W6e1VFuyuebLe3DarA__&Key-Pair-Id=KUT5TJCACFTXG","Senator Tony Sorrentino opened the hearing on LB 131 by saying the bill would conform Nebraska law with federal changes that allow 529 plans to be used for K–12 tuition, and would permit Nebraska taxpayers to use the Nebraska Educational Savings Trust (NEST) to make tax‑favored withdrawals up to $10,000 per beneficiary per year for elementary and secondary tuition. \"LB 131 allows Nebraskans the opportunity to save money for their children or grandchildren's education,\" Sorrentino said.

Deputy State Treasurer Rachel Beyer, who manages the NEST program, told the committee Nebraska’s program holds about $7.26 billion in assets with more than 301,000 accounts and a strong in‑state participation rate. Beyer said the state’s plan is at a competitive disadvantage if it does not permit K–12 withdrawals because families and financial advisors choose plans that allow the broader federal eligibility. She challenged assumptions in the Department of Revenue fiscal estimate, saying it assumes a one-time surge of large new contributions and immediate withdrawals that Beyer called unlikely based on program history.

Why it matters: supporters argued LB 131 expands families’ choices, helps parents and grandparents save for a wider set of education costs, and keeps the Nebraska plan competitive against plans in other states. Faith‑based and nonpublic school associations emphasized tuition relief for families who already pay private-school tuition and noted the bill would benefit families at a range of income levels.

Support and testimony in favor: Tom Bensor (Nebraska Catholic Conference), Matt Litt (Nebraska Coalition of Nonpublic Schools), Nicole Fox (Platt Institute), Jay Steinacher (program manager, NEST program manager contractor) and other backers said expanding qualified distributions to K–12 would increase family flexibility and support educational choice. Supporters also said the change could increase program scale and lower administrative costs.

Opposition and fiscal concerns: Tim Royers of the Nebraska State Education Association and other education and policy groups opposed the bill. Opponents argued the primary beneficiaries would be families who already can afford private tuition, that the proposed Nebraska tax deduction would primarily help higher-income filers, and that allowing immediate contributions and withdrawals could turn a long‑term savings vehicle into an immediate tax shelter in some cases. OpenSky Policy Institute’s witness also described revenue‑loss concerns at a time when the state faces budget pressures and said administrative churn from shorter holding periods could increase costs.

Technical and legal questions: committee members asked whether contributions and withdrawals in short order could be used to create immediate state tax benefits; Senator Sorrentino and Deputy Treasurer Beyer said such rapid in‑and‑out transactions are technically possible in limited circumstances (for example, to support an adult learner who is a beneficiary) but are uncommon, and Beyer said the Department of Revenue fiscal estimate overstated probable behavioral responses.

Outcome and next steps: after public testimony for and against the bill, Senator Sorrentino said he would stay to close and urged the committee to advance LB 131. The committee did not record a committee vote at the hearing.

Ending note: LB 131 drew a clear split along lines of education choice and fiscal policy: NEST administrators and school‑choice advocates urged modernization to match federal law and maintain competitiveness; many public education groups and fiscal-policy witnesses urged caution, citing distributional effects and state revenue impacts that they want addressed before advancement.

","Senator Tony Sorrentino introduced LB 131, a bill to allow Nebraska’s NEST 529 plan to pay up to $10,000 per beneficiary per year in K–12 tuition, aligning state law with federal tax law changes and supporters said would keep Nebraska competitive.","actionData","errors"]

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Senate revenue panel hears bill to cap annual property-tax bill increases at 3% or inflation

Revenue Committee hears proposal to let Nebraska 529 (NEST) pay K–12 tuition; sponsors and treasurer back expansion, education groups split