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Latest NE property tax plan would add sales tax to another 70-plus goods and services • Nebraska Examiner

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Latest NE property tax plan would add sales tax to another 70-plus goods and services • Nebraska Examiner


LINCOLN — Nebraska lawmakers are officially set to debate a tax relief package Tuesday that will include consideration of ending nearly 70 sales tax exemptions to provide funding for property tax cuts. 

One month ago, a draft property tax plan indicated lawmakers might begin taxing sales of 120 more goods or services. That number has been incrementally reduced in successive rewrites, and at this point has been cut nearly in half. 

The proposal

Some of the main components of the tax plan include:

  • Lowering the maximum school district tax rates for operational expenses to 40 cents per $100 of valuation for fiscal year 2025-26; 35 cents in 2026-27; and 30 cents in 2027-28 and beyond. The current maximum rate is $1.05.
  • Capping the annual increase in property tax collections by municipal and county governments at the rate of inflation or at 0% in times of deflation.
  • Crediting taxpayers for property taxes paid to their natural resources district (beginning at 50% in the next fiscal year).
  • Reimbursing county jail expenses (beginning at 25% in the next fiscal year).

Revenue Committee advances NE property tax relief package, with debate to start Tuesday

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Most funding will come from retooling existing property tax reduction programs, such as tax credits and the portion of homestead exemptions no longer needed as school tax rates come down.

The other major area of financing will come from the newly taxed goods and services and increases to “sin” taxes, such as on spirits, cigarettes, oral nicotine pouches, vapes, cigarettes, keno and cash devices.

Legislative Bill 34, as originally introduced by State Sen. Tom Brewer of north-central Nebraska, would freeze property valuation increases over four years. He has described it as a “backup plan” or “fail-safe.”

‘They don’t fix the problems’

State Sen. Brad von Gillern of Elkhorn, vice chair of the Revenue Committee, said he is “cautiously optimistic” heading into Tuesday’s floor debate after he and the committee chair, State Sen Lou Ann Linehan, and others “listened to parties on all sides.” Von Gillern said committee members tried their best to build the bill around concerns raised.

State Sen. George Dungan of Lincoln at a listening session on property taxes in Lincoln. July 22, 2024. (Zach Wendling/Nebraska Examiner)

State Sen. George Dungan of Lincoln, the lone “no” committee vote on LB 34, said the package remains “inherently regressive” and would hurt low-income residents. He said it would also not provide relief to renters, who live in about 50% of the housing units in Dungan’s district.

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“I understand there are certain parts of it that are intended to help low-income individuals, but on the whole, when you balance those against the other portions of the bill, I simply think they don’t fix the problems,” Dungan said.

State Sen. Eliot Bostar of Lincoln, who was “present, not voting” on Monday’s committee vote, said afterward: “It’s just not there yet for me.”

The Legislature is officially nonpartisan, but votes sometimes split along ideological lines. On Monday, the six Republican committee members supported the package. Dungan and Bostar are Democrats.

Municipalities have raised concerns about the proposed sales tax changes on two fronts. One is with the state collecting an additional 12% in local sales tax revenue each year. The other involves how businesses can request future refunds for economic development and workforce incentive programs, such as the Nebraska Advantage and ImagiNE Nebraska Acts.

Those tax incentive programs utilize local sales taxes, but with the municipalities not collecting the full tax base, some have said it could further complicate planning for those future refunds.

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Von Gillern pointed to a provision of LB 34 ensuring that cities or villages do not collect less sales tax revenue than they did in 2023-24, plus a 1% annual increase.

“There is a floor built into the bill, so they’re not going to get hurt on any of that,” he said.

‘We’ve got to get to 30’

State Sen. Brad von Gillern of Elkhorn. July 29, 2024. (Zach Wendling/Nebraska Examiner)

Von Gillern also pointed to an independent study from Ernie Goss, a regional economist and professor at Creighton University, contending that all taxes are regressive but that high property taxes are the most detrimental to economic growth.

“We’ve done as much as we can to take as much out that would have impacted the lowest income people, and I think we’ve done a good job of that,” von Gillern said. “We listened to the opponents, and we tried to modify as much as we could.”

He also pointed to internal legislative modeling, which was done on a previous tax package, where families with modest income would see a net benefit. He said that “seems to be forgotten in this discussion.”

Linehan said she thinks she has 31 votes but that getting to 33 votes on some bills to break a filibuster, particularly on proposals related to taxation, is “very, very partisan.”

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“We’ve got to get to 30,” Linehan said. “I think we’re at about 31 right now.”

Many provisions of LB 34, if passed, would take effect Oct. 1. That would require 33 votes not only to end debate but also to pass the bill to take effect within three calendar months. Sales tax exemptions or repeals can only occur at the start of a calendar quarter.

First-round debate on the package will begin at 9 a.m. Tuesday and can last up to eight hours.

 



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Nebraska

Dana Holgorsen, John Butler talk bowl prep and being “light on your feet”

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Dana Holgorsen, John Butler talk bowl prep and being “light on your feet”


Dana Holgorsen, John Butler talk bowl prep and being “light on your feet”

In today’s college football, coaches must have their head on a swivel.

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That’s true during the season of course, but it’s now a way of life once the transfer portal opens in December and rosters start moving and shaking. And things get even more wild if you’re at a program that’s playing in a bowl game, or even the College Football Playoff.

It’s a balancing act that all staffs are going through right now. Nebraska’s included.

“You’ve got to be light on your feet, man,” Nebraska defensive coordinator John Butler said during a press conference over Zoom on Thursday. “I mean, you’re maybe in the middle of a game-plan meeting and all of a sudden you got to jump out and you’re having a 30-minute meeting with a prospect that’s in on a visit, or you’re jumping on a Zoom doing it. Or you’re watching 15 minutes of tape to make sure that, hey, this guy just jumped in and he wants to visit us. So I think you got to be a fast thinker and mover and a shaker, quite frankly.”

This whole process has taught Butler, who spent the 2024 season as the defensive backs coach under now-departed DC Tony White, that these traits are as important as ever: Being decisive. Being organized. Following a road map to achieve a goal and not deviating from it when there’s chaos all over.

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“You’ve got to have a plan and a vision for what you’re looking for, because everything happens so fast,” Butler said. “You have a guy get in and get out, get in and get signed. And at the same time, you also got to keep an eye on your roster constantly, because there’s people reaching out. There’s people reaching out to your players, whether it’s direct or it’s people reaching out through a third party. And it’s unfortunate in this environment.

“People said, ‘Hey, it’s like NFL free agency.’ No, it’s not. NFL free agency is regulated.”

As Husker fans have come to learn, just because a player says he’s going to enter the transfer portal doesn’t mean he actually will. And sometimes when a player actually enters his name in the portal, there’s always a chance they could withdraw their name and return to their program if each side wants.

Nebraska saw that happen with defensive lineman Keona Davis, who briefly entered the portal before withdrawing and staying at NU for 2025. There was also running back Emmett Johnson — he announced he would enter the portal but never made it there.

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Holgorsen played a key role in convincing Johnson to stay at Nebraska.

“We had some long talks after the season, and I got to know him better as a person,” Holgorsen said of his relationship with Johnson. “I did that with a bunch of them, but him in particular was probably about the first one that came in and was excited about what we did, but there was some buts. So we had some long talks. I think he’s a great kid and he’s going to be a special player here. Excited to coach him.”

On Holgorsen’s side of the ball, he’ll have to adjust his game plan now that he’ll be without a handful of players he was able to use during the regular season.

Running back Dante Dowdell transferred to Kentucky on Friday. A tight end Holgorsen really liked, Nate Boerkircher, transferred to Texas A&M. Receiver Isaiah Neyor has chosen to opt out of the Pinstripe Bowl to focus on his NFL aspirations. Offensive lineman Micah Mazzccua, who began the year as the starting right guard but finished the season rotating with Gunnar Gottula at left tackle, won’t play in the bowl because he’s getting surgery to fix a torn labrum he played through during the season.

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There will be holes to fill on Holgorsen’s offense in the bowl game and beyond in 2025. But Holgorsen brushes all of this chaos off. He’s a go-with-the-flow guy. He doesn’t pretend to have answers to fix college football. What he does have, though, is a plan.

“There’s been a lot of talk out there about something needs to happen. That’s above my pay grade,” Holgorsen said. “So, the few kids who decided to do that (leave), we wish them well, and you just go replace them. It’s as simple as that.”

Part of that replacement process needs to happen for the bowl game with current members of the roster. Behind Emmett Johnson, expect Rahmir Johnson — he’s native of the Bronx and will have several family members and friends at Yankee Stadium — to play often as it’ll be his final game in a Husker uniform.

But with Dowdell and Gabe Ervin Jr. gone from the team, perhaps this Pinstripe Bowl will feature another big back on Nebraska’s roster who’s seldom been used: redshirt freshman Kwinten Ives, a 6-3, 210-pounder.

“You know, 23 (Dowdell) isn’t playing in the bowl game but 28 (Ives) is gonna go in there and he’s gonna play his tail off because he’s had nine spectacular practices,” Holgorsen said. “I think that’s how you got to look at it. You don’t worry about the ones that aren’t playing. You worry about the ones that are playing, and you coach them and you try to develop them, put them in position to hopefully be successful.”

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Nebraska

Purdue Transfer Quarterback Marcos Davila Commits to Nebraska

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Purdue Transfer Quarterback Marcos Davila Commits to Nebraska


KALEB HENRY

Kaleb Henry is an award-winning sports reporter, covering collegiate athletics since 2014 via radio, podcasting, and digital journalism. His experience with Big Ten Conference teams goes back more than a decade, including time covering programs such as the Nebraska Cornhuskers, Oregon Ducks, and USC Trojans. He has contributed to Sports Illustrated since 2021. Kaleb has won multiple awards for his sports coverage from the Nebraska Broadcasters Association and Midwest Broadcast Journalists Association. Prior to working in sports journalism, Kaleb was a Division I athlete on the Southern Illinois University-Edwardsville Track and Field team where he discussed NCAA legislation as SIUE’s representative to the Ohio Valley Conference Student-Athlete Advisory Committee. 



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Rhule talks Dante Dowdell, navigating new landscape of roster management

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Rhule talks Dante Dowdell, navigating new landscape of roster management


Many Nebraska football fans were caught off guard and surprised when they saw Dante Dowdell’s name pop up in the transfer portal.

The big and physical downhill runner played in every regular-season game this season with seven starts. Dowdell rushed for 614 rushing yards and 12 rushing touchdowns in 2024.

With Emmett Johnson and Dowdell, the Huskers looked to have a nice 1-2 punch in the backfield in 2025. Johnson as the shifty all-purpose back with plenty of make-you-miss and receiving ability in him. Dowdell, a young back who’s still developing in certain areas, as the 6-foot-2, 225-pound north-south bruiser who was money in short-yardage and goal-line situations.

But the days of being caught off guard and surprised by anything dealing with college football are over. With the way the sport is operating right now, Matt Rhule wasn’t surprised Dowdell is looking elsewhere.

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According to Nebraska’s head coach, the process of Dowdell’s departure started well before the transfer portal opened.



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