Three Things Nebraskans Can Count On: Sandhill Cranes, Husker Hopes, Property Tax Debates
As we start a new year there are some things that Nebraskans can always count on. The Sandhill Cranes will return to the Platte River Valley, the Husker faithful will swear that this is the year we win the National Championship and the Governor and State Senators will try to do something to lower property taxes.
A few weeks ago, Governor Pillen proposed a 2-cent increase in sales tax to offset the reduction in property tax revenue. Well, that idea didn’t last long. Pete Ricketts dismissed this idea when he was Governor acknowledging it was a tax hike. And soon after Governor Pillen proposed it pretty much everyone else dismissed the idea as well.
Let’s take a look at just one scenario. You may have noticed that there are a lot of apartment complexes popping up around town. Renters pay property taxes. But the tax is rolled into their monthly payment to the landlord. The landlord will benefit, but do the tenants that are paying higher sales taxes? No, of course they won’t.
So now it appears that Governor Pillen has kicked that idea to the curb but is still focused on lowering property taxes. At a press conference last week, he either wouldn’t or couldn’t say just how he would do that. He did say he would work with all the Senators in the Unicameral to achieve his goal of lowering property taxes by 40%
So, since it appears the Governor is open to suggestions, allow me to present some ideas to help ease the tax burden that Nebraskans hate so much.
There has been a lot of talk about the brain drain facing the state; educated people that are leaving Nebraska for greener pastures. Pastures where they would feel more at home. Yes, in some cases, those other states have lower property taxes, but that’s not the only reason people leave. After all, the higher property taxes are often offset by our generally lower cost of living.
Many people have left the state because they had better job opportunities elsewhere. They left the state because they didn’t feel welcome here. Whether that’s because of their skin color, their lifestyle, their politics or any other reason they felt that Nebraska isn’t for them.
Governor Pillen’s failed proposal would have made Nebraska sales taxes the highest in the country. So instead of that let’s try to do more to grow the state’s economic base. Let’s work to bring in more high paying jobs that offer growth opportunities to younger citizens. Work on providing an environment where people of color, immigrants or members of the LGBTQ community can feel safe and secure.
I know one idea being floated is to get rid of the sales tax exemptions on many goods and services. That idea has some merit, but does it really matter if the money I was spending on my property taxes was now being spent on haircuts or medical supplies? Is that real tax saving for the lower and middle class? Or just a shift in where the money goes?
We haven’t seen the impact of increased tax revenue from casinos in the state yet. Nebraska took in over 1.6 million dollars in November from casino taxes alone. A large portion of that goes to the property tax credit fund. Imagine how many tax dollars those casinos will bring in once the Omaha and other state casinos are at full operational capacity.
And dare I say it? Legalize, regulate, and tax marijuana like many of our neighboring states have done. At least medical marijuana. It would provide jobs and tax revenue.
Yes, Governor Pillen, property taxes are indeed too high. But don’t lower them by placing the burden on other citizens who could use the higher sales tax as another reason to leave the Good Life State. Let’s make it more desirable for people and businesses to come here. Let’s grow the economy with new ideas to help lower property taxes.
As we start the 2024 session of the Unicameral, let’s hope it won’t turn into the train wreck we saw last year. Hopefully we’ll have fewer politicians and more statesmen trying to tackle the real problems facing the state.
Let’s make it so that next year the three things that can be guaranteed in Nebraska are down to two. After all there’s not much you can do to stop the Sandhill Cranes or unrealistic Husker goals.
Tom Becka is a long time Nebraska broadcaster who for over 30 years has been covering Omaha and Midwest issues on both radio and TV. He has been a guest on numerous national cable and news shows, filled in for nationally syndicated talk radio programs and Talkers Magazine has recognized him as one of the Top 100 talk show hosts in the country 10 times. Never afraid to ruffle some feathers, his ‘Becka’s Beat’ commentaries can be found online on Youtube and other digital platforms.
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