Governor Jim Pillen was joined by state senators Thursday at the State Capitol Building to discuss the overall thrust of the plan he says is designed to cut property taxes by about 50 percent.
Among the lawmakers was Sen. Lou Ann Linehan of Elkhorn, who told reporters hard caps on local spending, decreases in state spending and a front-loading of the current income tax credit for property taxes paid are just one part of the proposal.
“We must also generate new revenue to further right-size our three legged stool. This will only happen by placing the sales tax on currently exempt products. The plan removes over 110 current exemptions,” said Linehan. “This may increase the final price for consumers, but they have choices on their what they buy and how much they pay for what they buy and ultimately, therefore, what tax they pay.”
Pillen said the property tax crisis has been accelerating at warp speed. “1984, it took 18 years to get to a billion. Then it took eight years to get to another billion, and then it took six years to get to the next billion. And then it took five years to get to the next billion. In the first 365 days I’ve been your governor, our property taxes went up $300 million,” Pillen said. “Folks have said, ‘Well, you know, why the session now?’ Why? Because it’s a crisis. If we don’t fix it, our property taxes will soon be going up $1 million a day.”
Also unveiled during the news conference was a brochure outlining the overall plan, and an online tool property owners can use to compare how much the relief plan would save on property taxes.
The special session to consider the proposal has been tentatively scheduled to start next Thursday, but Pillen has yet to sign the required proclamation that also sets the scope of legislation to be considered.
