Breaking down LB 103 and its benefits

Breaking down LB 103 and its benefits

LINCOLN, Neb. – (KGFW) Platte Institute Policy Director Sarah Curry went into detail with LB 103 proposed by Senator Lou Ann Linehan of District 39 to show the positive impacts this bill could create in communities across the state. Curry first explained what LB 103 is.

“LB 103 is a really interesting bill. It very simply states that if your valuation goes up, your levy must come down. With your house, if your valuation goes up by 10%, then the levy rate in your district must also go down by 10% to keep the total amount of taxes paid the same.”

Senator Linehan’s priority bill aims to keep the public out of the dark on what their local government is really doing with taxes.

“If your local government says we need more money because of road construction or school needs, it’s fine to raise the levy back up to get additional money. Before that can be done, a public hearing must be held and make it known so that people can voice their opinions and then a vote must be held.”

Curry has seen examples of property tax relief plans and says LB 103 has the components to be a leader in the bill that will positively impact property taxes for Nebraskans.

“The huge benefit with that is it limits local governments from collecting money but doesn’t put any ownness on the state. A lot of our reform efforts have looked at the state reimbursing the local governments for different functions because the things that local governments spend money on are important. The bill doesn’t do any of that. It capped essentially what local governments can spend their money on and that is a true key component of true property tax reform.”

The Nebraska Legislature’s Revenue Committee voted in favor of LB 103 with a unanimous 7-0 vote to advance the bill to the Unicameral for debate.