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

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…