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Revenue committee hears clash over constitutional amendment to cap property-tax growth
Summary
Sen. Bob Anderson introduced LR292CA, a proposed constitutional amendment to freeze taxable market values and cap year-over-year property-tax liability to the CPI-U. Supporters said it restores predictability for homeowners; counties, cities, schools and municipalities warned of revenue loss and equity problems.
Senator Bob Anderson, the introducer of LR292CA, told the Revenue Committee the constitutional amendment "stops taxing people out of their homes" and is designed to limit year-to-year property-tax increases by tying the taxable obligation to the consumer price index.
Supporters, including Jack Baum of Americans for Tax Reform and community advocacy groups, argued the proposal would protect retirees, single parents and long-term homeowners from sudden valuation spikes and provide a predictable path for planning. Baum cited national research to say Nebraska's property-tax burden is among the highest in the country and said indexing assessed-growth to CPI-U is a common approach used elsewhere.
Opponents from local government and education sectors urged caution. John Cannon, Executive Director of the Nebraska Association of County Officials, told the committee valuation is "a function and not the driver of the tax bill," and cautioned against replicating California-style acquisition-value systems that created gross inequities in other states. Meg Harris, finance director for La Vista and the United Cities of Sarpy County, said the proposal interacts with existing statutory levy limits and could produce immediate revenue shortfalls for cities at their levy ceiling; she estimated a roughly $500,000 loss in local revenue capacity to her city in year one of the plan.
Representatives from Nebraska's community colleges and K–12 advocates warned LR292CA could undo recent funding reforms that reduced reliance on property taxes. Courtney Whitstrock of the Nebraska Community College Association testified that the 2023 funding changes included safety nets and narrow levies designed to preserve college fiscal stability and said limiting allowable levy growth would weaken those safeguards.
Other witnesses emphasized housing-market tradeoffs. Kim Zwiner of the Nebraska Realtors Association warned assessment freezes can reduce mobility by giving long-term owners an advantage over first-time buyers, tightening inventory and hurting affordability. Policy analysts and think-tank experts said CPI‑U may not fully track local government cost pressures and suggested alternative indices or statutory approaches for limiting tax growth.
The committee recorded dozens of written submissions and more than an hour of oral testimony stressing both the urgency of property-tax relief and the risks of embedding complex finance rules in the state constitution. Senator Anderson closed by saying the amendment is narrowly designed as a foundation for broader reform and acknowledged it is not a "silver bullet."
The hearing concluded with the matter left for committee consideration; no formal committee vote was taken during today's session.
