The Revenue Committee heard testimony July 30 on Gov. Jim Pillen’s proposal to increase state sales tax revenue to fund a new tax credit program offsetting property taxes levied by school districts.
Under LB1, introduced by Elkhorn Sen. Lou Ann Linehan on behalf of the governor, the total amount of relief provided by the program would be approximately $2 billion in tax year 2025, $2.4 billion in tax year 2026 and $2.7 billion beginning in tax year 2027.The new credit would be calculated by dividing a parcel’s valuation by the county’s total real property valuation.
To ensure that the new program reduces property taxes, Linehan said, LB1 also would cap county, city and village property tax revenue growth at 0% or the percentage change in the Consumer Price Index for All Urban Consumers, whichever is greater.
