Technical fix to carry forward unused levy authority advances as local governments ask for stability

Summary

LB11‑54, introduced by Sen. Merv Riepe at the request of municipal and county associations, would amend the Property Tax Growth Limitation Act to allow political subdivisions to carry forward unused property‑tax request authority (subject to an existing 5% aggregate cap), addressing a reported 'use it or lose it' incentive under current law.

Lincoln — Senator Merv Riepe presented LB11‑54, a narrowly drawn revision to the Property Tax Growth Limitation Act that would change how a political subdivision’s preliminary property tax request authority is calculated.

Riepe said the change removes "unused property tax request authority" from the list of subtractions that reduce a subdivision’s base and would allow jurisdictions to carry forward unused authority up to the current statutory aggregate limit of 5% rather than effectively penalizing restraint. Representatives from NACO, the League of Nebraska Municipalities, and finance directors from La Vista and Omaha urged the committee to view the change as a small but important correction to avoid perverse incentives that encourage local subdivisions to maximize levies to preserve authority.

Proponents argued the bill is a technical cleanup following implementation of LB34 and related changes to the growth limitation act and would reduce pressure on smaller governments that need to plan multi‑year capital purchases. No opponents testified and the committee heard limited questioning before moving to close the hearing.