Legislative Newsletter
July 4th is Independence Day in America. This day commemorates the ratification of the Declaration of Independence by the Second Continental Congress on July 4, 1776. I hope that you are able to enjoy time with your friends and family. As we take the day to celebrate our country’s independence, we should remember the many brave men and women who have fought and sacrificed so that we may enjoy the gift of freedom.
I also want to make known that July 1, 2025, is the implementation date for one final provision of LB34, a bill that was passed in last year’s special session. LB34 included three main components: (1) front-loading the property tax credits for school taxes paid, (2) increasing the amount the state contributed to existing property relief programs, and (3) setting property tax revenue caps for cities
and counties.
The first two portions went into effect last year, and the effects would
have shown up on the December property tax statements for many people. The last provision is now fully in effect meaning this is the first year that cities and counties are capped in the amount of property taxes they can request year over year. That cap is currently set at the greater of 0% or inflation plus actual growth, plus certain allowances for public safety expenses.
Many of you will have started
receiving your property tax valuations in the mail. I have heard from many constituents that they are receiving valuations often past the rate of inflation. Valuations are based on the current market value as of Jan. 1 of
the calendar year. The valuations set the property tax base.
Political subdivisions are also starting their budgeting process at this time of year and will finalize their budget and tax requests in the next few months. Property taxes are levied and assessed locally. You may consider paying attention to or attending the budget hearings of your local political subdivisions: counties, cities, schools, NRDs, and ESUs. July and August are the time of year when many of the local budget hearings happen; those hearings are opportunities to engage with your local elected officials and voice your opinions about local government taxation, spending, and operations.
Last year's special session and this year’s most recent legislative session had the end result of Nebraskans ultimately getting fairly little property tax relief. The pink post cards that will soon be arriving in your mailbox will likely be evidence of that.
I will be collaborating with fellow rural senators throughout the summer to help work on a property tax relief plan which emphasizes the interests of greater Nebraska. In my mind, it is naïve to think stopping income tax cuts, as was suggested at times this
year during floor debate by various Lincoln and Omaha senators, will solve property taxes.
No plan will solve the problem overnight, but I'm hopeful that local leaders and groups will continue
to work with state senators to put together a proposal that will make meaningful progress on addressing property tax relief. We seem to keep spinning our wheels with the same solutions repeatedly being proposed without any long-term solution. The Legislature ought to keep all alternatives open to solve this persistent problem.
I invite you to let me know your thoughts, ideas, concerns, or suggestions. Feel free to call my Capitol office anytime at (402) 4712801 or email me at bdekay@leg. ne.gov. My mailing address is: Senator Barry DeKay, District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.
