Outgoing State Sen. Steve Erdman says he’s going to keep sounding off on the need to fix what he says is a tax increase in recently passed property tax relief legislation.
Erdman says he didn’t immediately realize LB 34 included language that eliminates the 2024 tax year income tax credit for property taxes paid, which he says is a net tax increase for one year.
He cited an example where a taxpayer could have expected a $1,000 credit for property taxes paid in 2023. “They have taken that $1,000 and they’re going to give it to you in ’24 for your property tax relief for ’24. So you have funded your own property tax relief,” said Erdman. “So, at the end of a two year cycle, using that example, you got $1,000. You’re supposed to get a $1,000 credit in 23 and $1,000 credit in 24. At the end of that two years, you should had a credit of $2,000. Under LB 34, you’re going to have $1,000.”
The bill also swept millions in unclaimed prior-year credits into the fund providing future relief, and those credits that should have applied to the 2023 property tax year will now become your credit for the 2024 year.
Erdman said he recently received an email from a former analyst at the state budget office, who he never agreed with, and was told for once in both of their lives, the pair agreed about the legislation containing a net tax increase, at least for one year. Erdman says the analyst claimed to have notified the governor and a number of state lawmakers but was ignored.
The Bayard lawmaker told KNEB News “It’s a property tax increase, don’t let them try to blow smoke up your skirt, because this is nothing other than a property tax increase. And the part that is aggravating is they knew it; the governor knew it, the Revenue Department knew it, they all knew that this was going to be the ramification of (LB)34. I am sorry I didn’t catch it, but I’ll tell you right now that I understand it now, and I’m going to do everything I can to get it fixed. So someone needs to introduce a bill to fix this.”
That someone won’t be Erdman, as this was his last year in the Legislature due to term limits, but he said he’s talked with fellow Panhandle Senator Brian Hardin, and he understands the situation. Erdman said even though you won’t see the problem immediately, he’s encouraging taxpayers to contact their state senator or the governor to push for a fix.
