Revenue Committee
January 23, 2025
Committee Chair: Sen. Brad von Gillern | Bills Heard: 3 | Full Transcript (PDF)
LB209: Cleanup bill addressing property tax exemptions for nursing facilities and disabled veterans homestead exemptions
Introduced by: Sen. Brad von Gillern | Testimony: 2 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Department of Revenue seeks clarity on nursing home and veteran tax exemptions in cleanup bill. LB209 addresses two ambiguities in Nebraska tax law: ensuring nonprofit nursing facilities retain full property tax exemptions while for-profit facilities receive partial exemptions based on Medicaid occupancy, and clarifying homestead exemptions for disabled veterans rated as having individual unemployability by the VA.
Why it matters: The ambiguities could result in unintended tax increases for nonprofit nursing homes and leave approximately 50 veterans in a statutory gray area regarding homestead exemptions that can mean the difference between keeping or losing their homes.
What they're saying: - Proponents: "This leaves open the door to certain interpretations at the county level in which property tax exemptions for nonprofit facilities could be calculated in the same manner as exemptions given for for-profit facilities," Sen. von Gillern said. The Nebraska Health Care Association emphasized the exemption for for-profits was always meant to be "in addition to" the nonprofit exemption, not a replacement. - Neutral: Jon Cannon of NACO defended the Department of Revenue's strict interpretation, noting that "exemptions are construed narrowly" in Nebraska and DOR "had no choice but to interpret them under the four squares of the document."
By the numbers: Approximately 50 known veterans currently utilize the unemployability-based homestead exemption; the fiscal note shows zero state budget impact.
What's next: No vote was taken during the hearing. The bill awaits committee action.
Committee sentiment: Supportive: Sen. Teresa Ibach, Sen. Kathleen Kauth
Sentiment estimated from questions and comments — not stated positions.
LB200: Reinstate $10,000 de minimis exemption on tangible personal property
Introduced by: Sen. Tony Sorrentino | Testimony: 3 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Sorrentino seeks to restore $10,000 exemption on business equipment taxes repealed five years ago. LB200 would reinstate a de minimis exemption on tangible personal property—machinery, equipment, and supplies—that Nebraska eliminated in 2020. The move would cost the state approximately $16 million annually but would remove many small businesses from the tax rolls entirely.
Why it matters: Nebraska is the only state that has ever repealed a de minimis exemption. Tangible personal property taxation disproportionately burdens small businesses, where compliance costs often exceed the actual tax owed. Neighboring Colorado has a $50,000 exemption; Wyoming proposed $20,000.
What they're saying: - Proponents: "The burden is often disproportionately higher for those small businesses," Nicole Fox of the Platte Institute testified. A startup mowing business owner described the struggle: "He's trying to make a go...yet being faced to do this. It's not an easy calculation." - Skeptics: Sen. Bostar questioned whether $10,000 is sufficient and whether phasing in the exemption over time might be fiscally prudent. Sen. Jacobson raised concerns about inconsistent exemptions, noting Bitcoin miners pay no personal property, real property, or employee taxes.
By the numbers: $16 million annual fiscal impact; represents 7% tax reduction for affected businesses; approximately $250 million paid annually in TPP taxes statewide.
What's next: No vote was taken. Committee received 2 proponent letters and 2 opponent letters in written testimony.
Committee sentiment: Skeptical: Sen. Mark Jacobson, Sen. Eliot Bostar
Sentiment estimated from questions and comments — not stated positions.
LB116: Amend Nebraska Visitors Development Act to allow counties to reinvest lodging tax in county-owned visitor projects
Introduced by: Sen. Beau Ballard | Testimony: 3 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Ballard's bill gives counties flexibility to reinvest lodging tax revenues in their own convention centers and visitor attractions. LB116 amends the Nebraska Visitors Development Act to allow counties to use County Visitor Improvement Fund revenues for maintenance and expansion of county-owned visitor projects, not just non-county-owned attractions. It also clarifies that turnback tax designations are limited to retailers within the applicant county's boundaries.
Why it matters: Convention centers generate expanded hotel occupancy and lodging tax revenues but typically cannot fund their own long-term improvements from internal revenues alone. The bill allows counties to strategically reinvest these expanded revenues to keep facilities competitive and viable for the next generation.
What they're saying: - Proponents: "We need a new HVAC system and we don't have the resources to keep it functioning at a world-class level," Jason Ball of the Lincoln Chamber testified. The Nebraska Travel Association noted that "a rising tide truly raises all boats" and that large-scale projects benefit statewide tourism. - Neutral: Jon Cannon of NACO expressed general support but noted board members had "a few questions" about what obligations the expansion and maintenance language could place on county boards, though he emphasized these are questions rather than reservations.
By the numbers: No fiscal impact; no state revenue expansion; bill does not increase state commitments.
What's next: No vote was taken during the hearing. Senator Ballard waived closing remarks due to a Judiciary Committee hearing.
Committee sentiment: Supportive: Sen. Mark Jacobson, Sen. Eliot Bostar
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair von Gillern opened the hearing and explained procedures, including the five-minute light system for testifiers and requirements for written position statements. Committee members introduced themselves: Sen. Tony Sorrentino (LD 39), Sen. Kathleen Kauth (LD 31), Sen. Eliot Bostar (LD 29), Sen. Dave Murman (LD 38), and Sen. Teresa Ibach (LD 44). Legal counsel Charles Hamilton and committee clerk Linda Schmidt were present; committee counsel Sovida Tran was at reserve training. Two pages were introduced: Lauren Nittler (University of Nebraska-Lincoln, agricultural economics) and Jessica Vihstadt (UNL sophomore, political science and criminal justice). The committee did not take votes on any bills during this hearing. Sen. von Gillern temporarily ceded the chair to Sen. Murman during LB209 testimony and to Sen. Jacobson during LB200 and LB116 hearings. At the conclusion of the hearing, Sen. Jacobson indicated the committee would not go into executive session on the bills discussed.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.