Governor Pillen Signs Historic Tax Package

LINCOLN, NEB. – Nebraska Farm Bureau has been fighting for property tax relief for rural Nebraskans for decades, and the close of the 2023 legislative session marked a major victory for every tax paying Nebraskan. The Legislature’s approval and Governor Pillen signing LB243, LB583, and LB754 is transformational for the entire state, and especially for our farmers and ranchers.

“Today is a great day for every tax paying Nebraskan with Governor Jim Pillen signing bills into law that will deliver historic property and income tax relief. Nebraska Farm Bureau has been fighting for property tax relief for rural Nebraskans for decades and this legislation helps deliver equitable tax distribution to every farmer and rancher. Getting LB 243 and LB 754 across the finish line is a huge victory for the entire state, especially coupled with reform to how education is funded.”

The property tax burden placed on our farmers and ranchers has long been inequitable and in need of reform. That disparity was evident within the public-school funding formula, the Tax Equity and Educational Opportunities Support Act, or TEEOSA. The Governor’s historic tax and education package delivers needed education funding reform and tax relief in several ways:

• Increasing state funding for public schools through foundation aid, special education funding, and a dedicated fund to ensure sustainability of this new funding;
• Placing a reasonable and workable cap on how much public schools can ask of property taxpayers for school funds;
• Removing community college property tax asking authority and replacing that financial resource with state funds that grow responsibly over time;
• Expanding the Property Tax Credit Fund, which is the largest source of property tax relief in the state, and allowing for further growth in the Refundable Income Tax Credits recently created; and
• Reducing the corporate and personal income tax rate from 5.84% to 3.99%.

“We thank state senators for getting these bills passed and putting billions of dollars back in the pockets of Nebraska taxpayers. We thank Governor Jim Pillen for his visionary and aggressive approach in tackling the state’s most pressing issue. Seeing the size and scope of relief delivered today shows a massive amount of will of the elected officials and the voters of this state.”

According to Nebraska Farm Bureau’s economist, the advocacy work done by Nebraska Farm Bureau on the property tax issue over the last several years has resulted in over $2 billion in property tax relief for agriculture, residential, and commercial property owners annually by 2030. Analysis shows that through Farm Bureau pushing for property tax relief, taxpayers will experience a 30 percent reduction in their annual property tax burden, delivered through various property and income tax credits, and from increased state funding for public schools. Without the recent gains, NEFB’s economist says the average farm would have owed more than $40,000 annually in property taxes in 2023. With the historic progress made over the past three years, the average farm’s property tax burden will be $28,000.

“To say that electing the first Governor rooted in agriculture in nearly a century was key to this success is an understatement. Nebraska’s lifeblood is agriculture, and we are seeing the state’s largest industry supported with this legislation.”

The Nebraska Farm Bureau is a grassroots, state-wide organization dedicated to supporting farm and ranch families and working for the benefit of all Nebraskans through a wide variety of educational, service, and advocacy efforts. More than 55,000 families across Nebraska are Farm Bureau members, working together to achieve rural and urban prosperity as agriculture is a key fuel to Nebraska’s economy. For more information about Nebraska Farm Bureau and agriculture, visit www.nefb.org.