Commissioners debate SB96, a 0.5% county sales-tax option tied to property-tax relief; legal questions prompt request for state interpretation

Lincoln County commissioners spent a substantial portion of their March 24 meeting discussing Senate Bill 96, the recently enacted state measure that contemplates a county option to impose a 0.5% sales tax and direct proceeds toward property-tax reduction for county levies.

Commissioner Aten opened the presentation with slides summarizing the bill language and Department of Revenue estimates showing a 0.5% county sales tax could substantially reduce the county portion of property taxes for owner-occupied homes (presenters cited an example: a $325,000 home could see an estimated county portion reduction of roughly $579). Commissioner Schmidt, who said she testified before the legislature on the measure, described the bill’s exemptions and argued the tax would provide meaningful relief to many homeowners.

At the same time several commissioners raised legal and policy concerns. One commissioner said he had read chapter 7-18A (the state code on initiated measures) and could not find a legal mechanism that clearly lets a county commission unilaterally refer the measure to voters; he asked for written legal opinions. Another commissioner and county staff said the Department of Revenue had indicated the bill’s intent was to allow county referral and that the language might benefit from clarification. The board agreed to contact the governor’s office and county legal counsel for a formal interpretation before taking any ordinance action.

Public commenters urged the board to explain which purchases would be subject to the sales tax (several exceptions were named during the discussion) and asked how renters would be affected (renters receive less or no direct property-tax benefit while paying higher sales taxes). Speakers also expressed broader skepticism about government spending and urged the commission to consider spending cuts as an alternative to a tax shift.

Commissioners and staff noted the bill does not change school levies (SB245 was discussed separately as a school-focused property-tax relief fund). Paul Anderson, county administrative assistant, provided a legislative update describing how SB96 (county portion) and SB245 (school portion) are intended to work together in the state’s approach to property-tax relief.

Next steps: Commissioners directed staff to seek clarification from the governor’s office and counsel on whether and how the commission may refer a county ordinance imposing the 0.5% sales tax to a public vote; they discussed timing for placing any question on the November 3, 2026 general-election ballot if legal counsel confirms the mechanism and staff return with an ordinance draft.