Revenue Committee
March 6, 2025
Committee Chair: Sen. Brad von Gillern | Bills Heard: 3 | Full Transcript (PDF)
LB494: Clarify revenue calculations and base determinations for school property tax relief fund transfers
Introduced by: Sen. Myron Dorn | Testimony: 0 proponents, 1 opponents, 2 neutral | Read bill text (PDF)
Technical fix to LB34 clarifies how excess revenue flows to school property tax relief fund. The bill addresses unintended consequences from last summer's special session tax relief package by specifying that one-time revenue spikes—like pass-through entity tax timing issues—don't become permanent obligations. Why it matters: Without this clarification, the state could face fiscal problems in future years when it lacks the revenue to sustain transfers it made in high-growth years. The bill protects the General Fund and Cash Reserve Fund while preserving the core commitment to property tax relief. What they're saying: Sen. Jacobson emphasized the special session was called specifically to reduce property taxes and warned that competing LB130 would undermine that goal. The Nebraska Chamber testified neutrally, preferring LB130's more flexible approach but acknowledging LB494 fixes real technical problems. Former Sen. Briese confirmed the bill ensures excess revenue growth is in addition to statutory amounts, addressing his original concern. What's next: No vote was taken. The bill received zero proponent testimony, one opponent (Chamber), and two neutral testifiers (Briese and Chamber). Sen. Dorn closed by reiterating that the bill provides clarity for the Fiscal Office without changing the 3% threshold or eliminating property tax relief growth.
Committee sentiment: Supportive: Sen. Mike Jacobson, Sen. Kathleen Kauth, Sen. Brad von Gillern Unclear: Sen. Tony Sorrentino, Sen. Dave Murman
Sentiment estimated from questions and comments — not stated positions.
LB564: Increase School District Property Tax Relief Credit Fund by $150 million annually
Introduced by: Sen. Tom Brandt | Testimony: 2 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Sen. Brandt proposes $150 million annual boost to school property tax relief fund, but Chamber warns of unsustainable budget trajectory. The bill would raise the fund from $780 million to $900 million this year and over $1 billion subsequently, funded through separate revenue bills on sales tax exemptions, candy/pop taxation, and pausing income tax cuts. Why it matters: Property tax burden grows $285 million annually, outpacing current relief. But the Chamber argues General Fund transfers will balloon from 5% to 25% of the state budget by decade's end, creating structural deficits in good economic times. What they're saying: Farm Bureau and former Sen. Briese support the front-loaded credit as fair and effective. Sen. Jacobson countered the Chamber: "If we said we can't afford income tax relief, you'd reject that argument—property taxes deserve equal priority." The Chamber's Bryan Slone urged a pause to define competitive targets and fix delivery mechanisms, arguing the state has spent $1 billion on property tax relief without clear results. By the numbers: Current fund: $750 million (FY24), $780 million (FY25), scheduled to reach $902 million by 2030. Proposed: $900 million (FY25), $1 billion+ thereafter. What's next: No vote taken. Sen. Brandt did not close. The bill received two proponents, one opponent, and zero neutral testimony.
Committee sentiment: Supportive: Sen. Mike Jacobson, Sen. Kathleen Kauth, Sen. Dave Murman Unclear: Sen. George Dungan
Sentiment estimated from questions and comments — not stated positions.
LB270: Allow municipalities to notify State Auditor of suspected sales tax irregularities
Introduced by: Sen. Victor Rountree | Testimony: 3 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
LB270 breaks confidentiality logjam, allowing municipalities to report suspected sales tax irregularities to State Auditor. Current law permits municipal representatives to review local option sales tax returns at the Department of Revenue but prohibits them from disclosing findings to anyone—even their own city council—under threat of Class I misdemeanor. The bill creates an exception allowing notification to the State Auditor for investigation. Why it matters: Municipalities like Papillion have lost sales tax revenue due to state incentive programs and need tools to verify they're receiving correct amounts. The bill ensures revenue accountability without creating new costs—it has no fiscal note. What they're saying: Michelle Andahl (Papillion) called the current rule "absurd," noting designees can identify problems but cannot document or report them. The State Auditor's office confirmed it has existing authority and staff to handle such audits. Sen. Dungan summarized: the bill adds accountability to an existing review process. What's next: No vote taken. The bill received three proponents (Papillion, League of Nebraska Municipalities, State Auditor), zero opponents, and zero neutral testimony. Sen. Rountree requested advancement to General File.
Committee sentiment: Supportive: Sen. George Dungan
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair von Gillern opened with procedural instructions regarding testifier sheets, time limits (3-minute green light system), and written position statement deadlines (8 a.m. day of hearing via Legislature website). Committee members present: Sen. Tony Sorrentino (LD 39), Sen. Kathleen Kauth (LD 31), Sen. Mike Jacobson (LD 42), Sen. Dave Murman (LD 38), Sen. George Dungan (LD 26), Sen. Teresa Ibach (LD 44). Legal counsel: Sovida Tran and Charles Hamilton. Committee clerk: Linda Schmidt. Pages: Lauren Nittler (University of Nebraska-Lincoln, agricultural econ) and Jessica Vihstadt (University of Nebraska-Lincoln, political science and criminal justice). The hearing proceeded through three bills: LB494, LB564, and LB270. No votes were taken on any bills during the hearing.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.