Revenue Committee
February 20, 2025
Committee Chair: Sen. Brad von Gillern | Bills Heard: 4 | Full Transcript (PDF)
LB399: Mutual Finance Assistance Act - Population Threshold Adjustment
Introduced by: Sen. Dave Wordekemper | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Rural fire districts would gain easier access to state funding under LB399. The bill lowers the population threshold for qualifying for Mutual Finance Assistance Act funds from 80% to 60% of population outside primary cities, potentially bringing in counties like Cass, Washington, and Otoe. Why it matters: Hundreds of thousands in designated state funds go unused annually—$921,440 in FY 2023-24 alone—while rural fire protection districts struggle with equipment and operational costs. The change maintains the program's rural focus while recognizing demographic shifts. What they're saying: Proponents argued the adjustment removes barriers without changing the funding mechanism or increasing taxes. "This modest change simply ensures both existing and new rural communities can access the designated funds," Sen. Wordekemper said. Kevin Edwards noted that lowering the threshold would make participation "more attractive to other counties in the state." By the numbers: The program currently serves 41-42 counties out of 93 statewide. Approximately $8 million is appropriated annually, with roughly $400,000 expected to remain even after new counties qualify. What's next: No vote was taken during the hearing. The bill advances with support from committee members and fire protection organizations.
Committee sentiment: Supportive: Sen. Mike Jacobson, Sen. Kathleen Kauth
Sentiment estimated from questions and comments — not stated positions.
LB575: Property Tax Transparency and Levy Limit Reform
Introduced by: Sen. Bob Hallstrom | Testimony: 3 proponents, 7 opponents, 0 neutral | Read bill text (PDF)
LB575 would require a two-thirds vote to raise property taxes above the prior year's level, but opponents say the timing makes it unworkable. The bill moves truth-in-taxation hearings from September to July and establishes a revenue-neutral levy baseline to prevent tax increases from rising valuations alone. Why it matters: Nebraskans are frustrated when property tax bills rise despite claims that levies weren't raised. The bill aims to force transparency and public action before tax increases happen. But counties don't receive certified valuations until August 20, making July hearings impossible without estimates. What they're saying: Proponents argue the bill prevents "the ruse of aggregating additional tax revenue without raising the levy itself." Sen. Hallstrom said it creates a "starting point" where "if they're going to have increases from there, there's a little more likelihood that we'll all understand the whys." Opponents countered that the timing is "literally impossible to implement." Jon Cannon detailed the property tax calendar, showing valuations aren't certified until August 20. He proposed LB683 as an alternative that provides notice of valuation change with estimated taxes in June. By the numbers: 3 proponent letters filed online; 4 opponent letters. Half of Nebraska's 528 municipalities are already at maximum levy limits. What's next: No vote was taken. Sen. Hallstrom indicated willingness to work with opponents on clarifications, particularly regarding interplay with LB34 caps and the timing of hearings.
Committee sentiment: Skeptical: Sen. George Dungan, Sen. Mike Jacobson Unclear: Sen. Dave Murman
Sentiment estimated from questions and comments — not stated positions.
LB613: Local Option Sales Tax Transparency and Audit Authority
Introduced by: Sen. Bob Andersen | Testimony: 3 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
LB613 would give municipalities the ability to audit local option sales tax receipts and know which businesses are enrolled in state incentive programs. Currently, cities can request sales tax information only once per year and must send one designated person to the Department of Revenue in Lincoln; that person faces criminal charges if they share what they learn. Why it matters: State incentive programs can claw back significant sales tax revenue for years, leaving municipalities unable to fund voter-approved projects. Papillion has received zero sales tax for the current budget year and next year due to incentive programs, yet cannot verify the calculations or plan accordingly. What they're saying: "We just want the ability to audit," Mayor Black said. He explained that municipalities are "absolutely blind" to state incentive enrollments because of confidentiality agreements between the state and businesses. Lynn Rex noted that current law makes it a Class I misdemeanor for the designated person to share information, even with other city employees. Jennifer Creager from the Chamber suggested using secure file-sharing systems for data security. By the numbers: 265 municipalities in Nebraska have local option sales tax. Papillion spent roughly $500,000 acquiring right-of-way for recent projects. What's next: No vote was taken. The bill has strong support from municipalities and chambers of commerce. One neutral testifier suggested a technical amendment regarding data security methods.
Committee sentiment: Supportive: Sen. Mike Jacobson, Sen. Tony Sorrentino
Sentiment estimated from questions and comments — not stated positions.
LB628: Recreational Trail Easement Property Tax Exemption Act
Introduced by: Sen. Robert Dover | Testimony: 5 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
LB628 would exempt land used for recreational trail easements from property taxes, removing a major barrier to trail development across Nebraska. The bill allows landowners to retain ownership while granting easements for public trails, preventing the need for costly land acquisition by municipalities or nonprofits. Why it matters: Nebraska has less than 2% of its land designated for public use, limiting outdoor recreation access. Trails are the top-desired recreational amenity according to the state's Comprehensive Outdoor Recreation Plan. The bill is modeled after successful programs in South Carolina and 14 other states. What they're saying: "This gives us a new tool for many communities, municipalities, agencies to build trails without having to acquire land," Jason Buss testified. Kent McNeill cited economic data: Nebraska's outdoor recreation generates $3.5 billion annually and supports 27,000 jobs. He noted that Northwest Arkansas' $75 million trail investment generates $150 million in annual returns. Cait Dumas-Hein testified that every dollar spent on trails generates over $4 return, and that cyclists spend five times more with businesses than car visitors. By the numbers: The Cowboy Trail cost $5.6 million and generates just over $12 million annually. Norfolk spent approximately $500,000 acquiring right-of-way for recent projects. Small towns with 300 residents investing in trails have seen 7.7% job growth over five years. What's next: No vote was taken. The bill received strong support from trail advocates, municipalities, and outdoor recreation organizations. One amendment from the Department of Revenue would eliminate their fiscal note. Potential amendment to accommodate motorized trail use was discussed.
Committee sentiment: Supportive: Sen. George Dungan, Sen. Dave Murman, Sen. Kathleen Kauth, Sen. Mike Jacobson
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The Revenue Committee heard four bills on February 20, 2025. Committee Chair Sen. Brad von Gillern opened with procedural instructions regarding testifier sheets, sign-in sheets, the three-minute light system, and written position comment deadlines. Committee members present included Sen. Tony Sorrentino (LD39), Sen. Kathleen Kauth (LD31), Sen. Eliot Bostar (LD29), Sen. Mike Jacobson (LD42), Sen. Dave Murman (LD38), and Sen. George Dungan (LD26). Legal counsel Sovida Tran and Charles Hamilton, and committee clerk Linda Schmidt assisted. Pages Lauren Nittler and Jessica Vihstadt provided support. No votes were taken on any bills during the hearing.
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