Bill to Fix Property Tax Relief “Glitch” Unlikely To Pass This Legislative Session

By Gordon HopkinsA bill intended to fix what Senator Tom Brewer (District 43) called a “glitch” in a tax relief bill, has been put on hold and will likely not pass this legislative session.Last year, the Nebraska Legislature passed LB (Legislative Bill) 34, which front loads a 30 percent property tax credit that goes to the schools, rather than requiring taxpayers to claim it as a credit on their state income tax return. LB 34 was supposed to provide tax relief by not requiring taxpayers to claim the credit, thus ensuring that all taxpayers receive the credit. However, as a result of the wording of the bill, those who paid their 2023 property taxes in 2024 will not be able to claim the tax credit.Senator Brewer originally introduced LB 34, although is quick to point out that the version of LB 34 that passed is substantially different from his original proposal. Senator Brewer told FJN during a phone call last year, “If they would have left my bill alone as it was originally, it would have been pretty easy to defend, because none of this would have happened.”“Unfortunately, if you are the originator of the bill,” said Brewer, “you still get stuck with your name on it. Even if you didn’t agree with the bill, it’s still your bill.” To fix this problem, Senator Brian Hardin (R-48) introduced LB 81 this year. Last year, he voted for LB 34, although he later said he did not realize that it “unintentionally shortchanged” Nebraska taxpayers. Hardin said LB 81 would allow affected taxpayers to claim the refundable credit in taxable years beginning in 2024.As of press time, the bill has not advanced out of the Revenue Committee. Even if the bill does eventually make it out of committee, it was not designated as a priority bill and, as such, will have to go at the “back of the line” of the other bills under consideration.

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