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Sen. Tom Brandt offers LB564 to add $150 million to school property tax relief fund; supporters press for larger, opponents caution on sustainability
Summary
LB564 would add $150 million annually to the school district property tax relief credit fund. Supporters, including ag groups and rural advocates, said the increase is simple and fair; the Nebraska Chamber opposed the bill on sustainability grounds and urged pause to evaluate delivery mechanisms and long‑term funding.
Senator Tom Brandt introduced LB564 in a Revenue Committee hearing, proposing a $150 million annual increase to the school district property tax relief credit fund to boost direct property tax credits on tax statements.
Supporters called the bill a straightforward way to deliver broader relief to homeowners, agriculture and commercial taxpayers; opponents cautioned that Nebraska lacks a sustainable funding mechanism to keep enlarging statutory transfer obligations without broader revenue growth or structural reforms.
Senator Tom Brandt (District 32), sponsor of LB564, said the fund's purpose is “to provide property tax relief to Nebraskans by applying credits directly to tax statements” and proposed raising the fund from the currently scheduled $780 million to $900 million for the upcoming fiscal year, then higher in subsequent years if LB564 is enacted.
Bruce Rieker (senior director of state legislative affairs, Nebraska Farm Bureau) testified in support on behalf of the Ag Leaders Working Group and said the front‑loaded credit is an effective, fair tool that delivers the same percentage relief across residential, commercial and agricultural taxpayers. Rieker told the committee the state’s property tax burden is growing at an unsustainable rate—citing an estimated annual increase of about $285 million—and said the group favors aggressive action to counter that trend.
Former Senator Tom Briese, testifying in support, described the front‑loaded credit as “effective, simple and fair” and urged the committee to put as much money as possible into the fund to provide immediate relief.
Brian Sloane of the Nebraska Chamber (testifying in opposition) said the Chamber does not dispute the need for property tax relief but opposed LB564 on fiscal sustainability grounds. Sloane said the state lacks the budget structure to continue expanding automatic statutory transfers and that transferring large, annual sums without a delivery review risks placing one‑quarter of the state budget outside the appropriations process in a few years. He urged a pause to analyze whether current delivery mechanisms are efficient and to set a clear target for the state's obligation to education before adding recurring transfers.
Committee members asked about the fiscal note and where new revenues would come from. Sponsor Brandt referenced pending revenue proposals on sales tax exemptions and other changes he plans to introduce that he said could generate additional revenue. Chamber representatives said they prefer reliance on growth revenues and analytical targets rather than continually expanding statutory obligations without long‑term funding assurances.
No committee vote was recorded at the LB564 hearing; proponents and opponents urged further consideration of funding sources and delivery mechanisms as the Legislature continues debating larger property tax reform.
