LINCOLN — Gov. Dave Heineman said Tuesday that he was willing to consider multiple options to achieve “responsible and meaningful” property tax relief.
Those options include lowering the taxable value of agricultural land and adding to the Property Tax Credit Fund.
Heineman said he endorsed the idea of lowering ag land values because the Nebraska Farm Bureau Federation and the Nebraska Cattlemen preferred that choice.
But he said he would be happy with proposals to increase the Property Tax Credit Fund, the option preferred by lawmakers on the Revenue Committee.
Heineman noted during a press conference that he had established the tax credit fund. It was part of a major tax cut package passed early in his term in office.
Either way, the governor called it good news that state lawmakers are debating how to ease Nebraskans' property tax burden.
The Appropriations Committee is expected to decide this week about putting more money into the Property Tax Credit Fund.
Credits provided by the fund have been shrinking over the years because the money has to stretch further.
The fund has remained at $115 million annually since 2008 while the total value of property in the state has grown.
State tax officials calculate the credit by dividing the amount budgeted for property tax credits by the total valuation of taxable property in Nebraska.
Heineman also reiterated his support for income tax cuts, saying that Nebraska needs to continue making progress in attracting business investment to the state.
The Revenue Committee has advanced a bill that would index income tax brackets for inflation but has taken no action yet on a proposal to cut tax rates.