BEATRICE – With only three days remaining in the Nebraska Legislative session, lawmakers will have to act quickly to approve a scaled-down property tax relief proposal.


A proposal that lumps property tax relief, a business incentives program and funding for a medical facility together, advanced to second round this week. State Senator Myron Dorn says the property tax relief plan is now missing what were some key portions. The school aid formula was left out of the bill and the gradual lowering of median valuation on agriculture, residential and commercial property also was taken out.


"There's not part of TEEOSA (school aid formula) included in this property tax incentive package bill. It did go from lowering the valuation caps on ag land from 75 down to 55....it took that out. It does put in place $125 million in property tax relief for the year 2020....which will be used only to count toward your school property taxes....that's what the relief is going to be based, off of".


Dorn says the property tax relief will be in the form of an income tax credit. He said he was in favor of long-term valuation relief on the property tax issue…but there wasn’t enough support in the body to go forward with that.


Dorn says the $125 million in property tax relief in the next year would be distributed proportionately, based on the level of property taxes within school districts.


"So, in other words, a district like Beatrice which is at a dollar-and-a-nickel...they are now paying a higher rate than a Freeman, at Adams...which is in the 80-cents range on their levy. So, they are paying at a higher rate, and will see a little bit more reduction in their property taxes because their school taxes are based on that higher rate. That was part of this bill several senators definitely liked".


The effect on state revenues from the coronavirus pandemic could delay funding further property tax relief, unless the state can meet certain targets based on the economy and revenue levels in future years.


Any bills on first round won’t be heard the rest of this session. Bills at second-round stage must be advanced on Tuesday, so there is a scheduled layover day prior to final consideration, on Thursday. That includes the major proposal on property tax relief, state business incentives and the medical facility funding.


State senators have a four-day weekend before returning on Tuesday. The final day of the 60-day session is Thursday.