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Showdown on property tax relief begins in legislature with only days left in session

Showdown on property tax relief begins in legislature with only days left in session
THERE’S BEEN SO MUCH MISINFORMATION ABOUT THIS BILL THAT I HOPE NOT JUST MY COLLEAGUES AND INSIDE THE LEGISLATURE LISTEN, BUT I HOPE PEOPLE AT HOME LISTEN. THE DEBATE OVER GIVING YOU MORE PROPERTY TAX RELIEF IS UNDERWAY RIGHT NOW AT THE STATE LEGISLATURE. GOOD EVENING. I’M JULIE CORNELL. I’M ROB MCCARTNEY. LAWMAKERS HAVE JUST TEN DAYS LEFT IN THE SESSION TO PASS SB 388. IT PROVIDES $650 MILLION IN RELIEF. BUT IT RAISES THE STATE’S SALES TAX BY $0.01 ADDS SALES TAX TO ITEMS LIKE SODA AND CANDY CANDY. HOWEVER, IT REMOVES THE SALES TAX ON UTILITIES. AND HERE ARE SOME OF THE DEBATE THIS EVENING. SO IF WE’RE GOING TO GET UP HERE AND ARGUE THAT A PENNY INCREASE IN SALES TAX HURTS THE LOW INCOME, SHOW ME THE NUMBERS. AS EVERYBODY HERE, I THINK IS TRYING TO WORK TOWARDS THE SAME GOAL OF ACHIEVING. PROPERTY TAX RELIEF. I’M OPPOSED TO A SALES TAX INCREASE BECAUSE I BELIEVE IT ULTIMATELY IS BAD FOR NEBRASKA. LAWMAKERS WILL HAVE THEIR WORK CUT OUT FOR THEM. SEVERAL GROUPS HAVE COME OUT BLASTING THE PROPOSAL. KETV NEWSWATCH SEVEN’S ANDREW OZAKI TALKED WITH A FEW OF THEM TODAY AND CONTINUES OUR COVERAGE. THERE WE GO. PET GROOMING IS ONE OF THE SERVICES THAT WOULD NO LONGER BE EXEMPT FROM SALES TAX UNDER THE PROPOSED PROPERTY TAX RELIEF PACKAGE. I WOULD NOT CALL THIS A LUXURY ITEM. THE OWNER OF THE LINCOLN PET PARLOR SAYS THESE ARE NEEDED SERVICES FOR MANY PET OWNERS BECAUSE IT’S REALLY GOOD FOR THEIR DOG’S HEALTH, AND IT’S JUST SOMETHING IMPORTANT THAT THEY HAVE TO DO TO MAKE SURE THAT THEY KEEP THAT COAT KIND OF THE WAY THAT IT’S SUPPOSED TO GO. THE SKILLED GAMING INDUSTRY IS ALSO BALKING AT A 20% TAX ON THEIR REVENUES. YOU’RE NOT GOING TO SEE PROPERTY TAX RELIEF THROUGH INCREASED TAX REVENUES BECAUSE IT WILL EFFECTIVELY ELIMINATE THE BUSINESS. ORGANIZATIONS LIKE THE CHAMBER OF COMMERCE OPENED BY PLATTE INSTITUTE AND AMERICANS FOR PROSPERITY, ARE ALL OPPOSED. THEY SAY THE POTENTIAL PENNY SALES TAX HIKE IS A MAJOR SHIFT. THIS PACKAGE IS A DISASTER. IT’S GOING TO BE THE LARGEST TAX INCREASE IN STATE HISTORY. THERE ARE FOLKS WHO ARE GOING TO BE PAYING MORE, UM, AS A IN THEIR OVERALL TAX BURDEN. IT’S PREDOMINANTLY LOW AND MIDDLE INCOME NEBRASKANS. GOVERNOR JIM PILLEN, WHO SUPPORTS THE PLAN, FIRED BACK. THIS IS TRANSFORMATIVE. THOSE THAT ARE TAKING POT SHOTS TALK CALLING US A TAX INCREASER. THEY THEY THEY HAVEN’T BALANCED A CHECKBOOK. THE NEBRASKA FARM BUREAU ALSO BACKS THE BILL, SAYING IT WOULD WOULD BALANCE OUT THE TAX BURDEN BETWEEN SALES INCOME AND PROPERTY TAXES. AND WHILE THE NEBRASKA STATE EDUCATION ASSOCIATION, LIKE SOME OF THE ELEMENTS THEY QUESTION IF THERE’S ENOUGH TIME LEFT IN THE SESSION. WE HAVE AT BEST EIGHT DAYS TO FIGURE OUT IF THIS IS GOING TO END UP BEING, YOU KNOW, A POSITIVE FOR OUR SCHOOLS AND OUR COMMUNITIES. WE’RE GETTING IT DONE THIS SESSION. WE’RE GETTING IT DONE THI
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Showdown on property tax relief begins in legislature with only days left in session
The debate over giving you more property tax relief is underway the state legislature.Lawmakers have only a few days left in the session to pass LB 388."There's been so much misinformation about this bill that I hope not just my colleagues inside the legislature listen, but I hope people at home listen," the chair of Legislature's Revenue Committee state Sen. Lou Ann Linehan said. The bill provides $650 million in relief, but it could raise the state sales tax by one cent.It adds sales tax to items like soda and candy, pet services, storage and moving services, and dry cleaning.The bill taxes Nebraska Lottery sales at a 20% sales tax.Increases taxes on cigarettes to $1 per pack total and places a 100% tax on CBD and consumable hemp products.It also doubles both tiers of taxation on vaping.However, the bill removes the sales tax on utilities.It also put a 3% cap on property taxes on cities and villages. "If we're going to get up here and argue that a penny increase in sales tax hurts the low-income. Show me the numbers," Linehan said.State Sen. George Dungan said everyone is working to the goal of achieving property tax relief. "I'm opposed to a sales tax increase because I believe it ultimately is bad for Nebraska," Dungan said.And so do a number of organizations and businesses.Adam Hall owns the Lincoln Pet Parlor.He is concerned pet grooming is one of the services that would no longer be exempt from sales taxes."I would not call this a luxury item," Hall said. He said it would add to the cost for needed services for many pet owners."Because it's really good for their dog's health and it's just something important that they have to do to make sure that they keep that coat kind of the way that it's supposed to go," Hall said.The skilled gaming industry is also doubling down against a 20% tax on their revenues."This bill just came out of left field. And frankly, no one was consulted. And it's it's extremely punitive," said U.S. Gaming President Mark Phelan. He said many of the businesses are "mom and pop" trying to make payroll after the pandemic."You're not going to see property tax relief through an increase tax revenues because it will effectively eliminate the business," Phelan said.Organizations like several chambers of commerce, OpenSky Policy Institute, Platte Institute and Americans for Prosperity all blasted the plan, calling a major tax shift."This package is a disaster. It's going to be the largest tax increase in state history," Americans for Prosperity Nebraska Director John Gage said."It's a bad deal. You're not going to get dollar-for-dollar property tax relief. You're going to be paying more taxes than you did in past year. There's gonna be more losers, and there's going to be winners under this tax," Gage said.Rebecca Firestone, the executive director of OpenSky Policy Institute, said the bill would be a tax shift and a tax increase for some."There are going to be taxpayers who are going to be paying more and that's predominantly middle and lower-income Nebraskans," Firestone said.Gov. Jim Pillen supported the plan and fired back at opponents.Previous coverage: Nebraska Gov. Pillen praises new property tax relief plan. See the story here."Those that are taking potshots talk calling us a tax increase. They haven't balanced the checkbook," Pillen said.He said Nebraskans pay some of the highest property taxes in the country."The seventh highest taxed in property taxes in the country. It's a top 10 we don't want to be in," Pillen said.The Nebraska Farm Bureau also backs the bill saying it would balance out the tax burden between sale income and property taxes."We want Nebraska to grow. For that to happen we need to fix our tax policy that's allowed property tax to be a major cost of doing business in the state. Addressing property taxes is also part of the solution to our state's workforce issues, as property taxes are clearly driving up the costs of homeownership for our current and potential workforce," NEFB President Mark McHargue said. "There are details of this bill we like. It's just a question of execution," Millard Education Association President Tim Royers said.He is concerned that there is enough time left in the session for lawmakers and the public to properly examine the bill."This day 51 of the 60-day Legislature, which means we have at best eight days to figure out if this is going to end up being a positive for our schools and our communities," Royers said. MORE COVERAGE: Committee advances major property tax reform plan to Nebraska lawmakersPillen believes taxpayers want property tax relief now."We're getting it done this session. We're getting it done this year," Pillen said.Click here for the latest headlines from KETV NewsWatch 7

The debate over giving you more property tax relief is underway the state legislature.

Lawmakers have only a few days left in the session to pass LB 388.

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"There's been so much misinformation about this bill that I hope not just my colleagues inside the legislature listen, but I hope people at home listen," the chair of Legislature's Revenue Committee state Sen. Lou Ann Linehan said.

The bill provides $650 million in relief, but it could raise the state sales tax by one cent.

It adds sales tax to items like soda and candy, pet services, storage and moving services, and dry cleaning.

The bill taxes Nebraska Lottery sales at a 20% sales tax.

Increases taxes on cigarettes to $1 per pack total and places a 100% tax on CBD and consumable hemp products.

It also doubles both tiers of taxation on vaping.

However, the bill removes the sales tax on utilities.

It also put a 3% cap on property taxes on cities and villages.

"If we're going to get up here and argue that a penny increase in sales tax hurts the low-income. Show me the numbers," Linehan said.

State Sen. George Dungan said everyone is working to the goal of achieving property tax relief.

"I'm opposed to a sales tax increase because I believe it ultimately is bad for Nebraska," Dungan said.

And so do a number of organizations and businesses.

Adam Hall owns the Lincoln Pet Parlor.

He is concerned pet grooming is one of the services that would no longer be exempt from sales taxes.

"I would not call this a luxury item," Hall said.

He said it would add to the cost for needed services for many pet owners.

"Because it's really good for their dog's health and it's just something important that they have to do to make sure that they keep that coat kind of the way that it's supposed to go," Hall said.

The skilled gaming industry is also doubling down against a 20% tax on their revenues.

"This bill just came out of left field. And frankly, no one was consulted. And it's it's extremely punitive," said U.S. Gaming President Mark Phelan.

He said many of the businesses are "mom and pop" trying to make payroll after the pandemic.

"You're not going to see property tax relief through an increase tax revenues because it will effectively eliminate the business," Phelan said.

Organizations like several chambers of commerce, OpenSky Policy Institute, Platte Institute and Americans for Prosperity all blasted the plan, calling a major tax shift.

"This package is a disaster. It's going to be the largest tax increase in state history," Americans for Prosperity Nebraska Director John Gage said.

"It's a bad deal. You're not going to get dollar-for-dollar property tax relief. You're going to be paying more taxes than you did in past year. There's gonna be more losers, and there's going to be winners under this tax," Gage said.

Rebecca Firestone, the executive director of OpenSky Policy Institute, said the bill would be a tax shift and a tax increase for some.

"There are going to be taxpayers who are going to be paying more and that's predominantly middle and lower-income Nebraskans," Firestone said.

Gov. Jim Pillen supported the plan and fired back at opponents.

Previous coverage: Nebraska Gov. Pillen praises new property tax relief plan. See the story here.

"Those that are taking potshots talk calling us a tax increase. They haven't balanced the checkbook," Pillen said.

He said Nebraskans pay some of the highest property taxes in the country.

"The seventh highest taxed in property taxes in the country. It's a top 10 we don't want to be in," Pillen said.

The Nebraska Farm Bureau also backs the bill saying it would balance out the tax burden between sale income and property taxes.

"We want Nebraska to grow. For that to happen we need to fix our tax policy that's allowed property tax to be a major cost of doing business in the state. Addressing property taxes is also part of the solution to our state's workforce issues, as property taxes are clearly driving up the costs of homeownership for our current and potential workforce," NEFB President Mark McHargue said.

"There are details of this bill we like. It's just a question of execution," Millard Education Association President Tim Royers said.

He is concerned that there is enough time left in the session for lawmakers and the public to properly examine the bill.

"This day 51 of the 60-day Legislature, which means we have at best eight days to figure out if this is going to end up being a positive for our schools and our communities," Royers said.

MORE COVERAGE: Committee advances major property tax reform plan to Nebraska lawmakers

Pillen believes taxpayers want property tax relief now.

"We're getting it done this session. We're getting it done this year," Pillen said.

Click here for the latest headlines from KETV NewsWatch 7