Nebraska lawmakers have advanced a compromise package to soften the impact of local property tax increases, preserve tax incentives for businesses and commit as much as $300 million in state money to a proposed disaster response facility in Omaha.
The measure won first-round approval Wednesday just days before this year’s legislative session is scheduled to end.
Lawmakers struck the last-minute deal even though a lot of them said they didn’t like much of the package, and others complained that it was being rushed through the Legislature. Several rural senators said the property tax portion would only slow the rate of increases for some homeowners, farmers and business owners.
Details of the Grand Compromise show property tax relief will come as a refundable tax credit off of taxes paid toward your school district. The fund will have $125 million the first year and increase to $325 million in year 5. The bargain also includes $25 million for business incentives in year 1 and balloons to $125 million in year 5. The more than two-billion-dollar University of Nebraska Medical Center Project’s fund will be taken up in four years.
Nebraska Governor Pete Ricetts supports the bill.