Gov. Jim Pillen announced Tuesday that Nebraska property owners will split $20 million in tax relief, saying he would continue to “put all our efforts into getting the crippling property tax crisis fixed for Nebraskans.”
Over the last decade, property tax collections across Nebraska to support public schools, city and county governments, as well as natural resources districts, fire districts and townships have ballooned by more than $2 billion to $5.3 billion total. Pillen has sought ways to relieve property taxes and called the crusade his top priority.
The relief announced Tuesday comes from higher-than-expected gambling revenue and unused cash in the state’s Property Tax Credit Cash Fund and School District Property Tax Credit Fund, according to a press release. The governor’s office did not immediately respond to requests for a more detailed breakdown of the $20 million.
Gambling receipts this year show the state will see much higher gambling revenues than last year.
Casino gambling this year through the end of July has generated more than $141.5 million in revenue and $28.3 million in taxes, with $19.8 million slated for property tax relief.
In all of 2024, the revenue was $145.6 million, taxes were $29.1 million and property tax relief was $20.3 million.
Earlier this year, State Sen. Eliot Bostar attempted to pass legislation that would have put online sports betting on a statewide ballot in 2026. He estimated $32 million in new revenue for Nebraska, which has contended with high property tax rates for years along with massive budget shortfalls — about $400 million this year and an expected $311 million next year.
The proposal advanced through one vote but didn’t have the support to overcome a filibuster. Bostar, a Democrat, pulled the proposal rather than risk an unsuccessful vote. Republicans who fought Bostar’s proposal argued that the ill-effects of increased problem gambling would outweigh potential financial gains for the state.
Pillen, a Republican, has indicated he’s open to expanding gambling. He has said he doesn’t like sports betting, but people are doing it anyway without the state making any money from it.
He also made reference in his press release to his past efforts to pass tax reforms in the Legislature that have fallen short.
“We still have work to do with our senators,” Pillen said. “Due to ideological beliefs and special interest groups, the Legislature has unfortunately failed to deliver true and meaningful property tax relief.”
The governor called a special legislative session last year to get a 50% cut by lifting exemptions on various goods and services to generate new revenue. The cuts the lawmakers adopted were closer to 3%.
Some lawmakers attempted to pass pieces of Pillen’s plan this year but failed to rally enough support. The bill package proposed raising the tax on tobacco and vape products, closing a loophole for online cigar purchases and removing a sales tax exemption on soft drinks along with a specific list of services that ranged from charter flights to nail care.
Sen. Tom Brandt of Plymouth, the bill sponsor, said Nebraska doesn’t have many places to turn for revenue and noted expected increases to property taxes in the year ahead.
A majority of lawmakers supported the bill package, but not enough to beat a filibuster. Opponents of the tax reforms called them regressive, shifting a burden from people who are able to own property to all consumers. Others also said the bill did nothing to fix the actual tax system.
Unlike most votes in the Legislature, the vote on that package did not follow party lines: 25 of 33 Republicans voted for the bill, with five Democrats joining them. Similarly, some of the most outspoken critics of Pillen’s 2024 plan were conservatives.
Pillen highlighted successful relief efforts, like increasing direct relief to property taxpayers by $1.26 billion, shifting community colleges from local to state funding and capping school district, city and county revenues. The Legislature also passed a bill this year that created a group to study reforms to the school funding formula.
Property taxes have become so frustrating for some Nebraskans that they have taken up the issue themselves. In August, the group Advocates For All Nebraskans announced two ballot initiatives aimed at halving property taxes in the state.
Get Government & Politics updates in your inbox!
Stay up-to-date on the latest in local and national government and political topics with our newsletter.
* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.
Josh Reyes
Get email notifications on {{subject}} daily!
Your notification has been saved.
There was a problem saving your notification.
{{description}}
Email notifications are only sent once a day, and only if there are new matching items.
Followed notifications
Please log in to use this feature
Log In
Don’t have an account? Sign Up Today