Special Session – Call to Action

This week is the start of public hearings at the Unicameral on the legislation introduced the first 2 days of the special session. We’re currently at 35 bills and 6 constitutional amendments with a rumored 45-55 bills to go. Monday end of day will be the deadline for submitting legislation for the special session.

It is crucial to submit online comments or join us in person in order to make our voices heard and our expectations clear.

View the scheduled hearings for Monday, July 29th:
https://nebraskalegislature.gov/calendar/hearings.php?day=2024-07-29

View the schedule hearings/appointments for Tuesday, July 30th:
https://nebraskalegislature.gov/calendar/hearings.php?day=2024-07-30

View the scheduled hearings for Wednesday, July 31st:
https://nebraskalegislature.gov/calendar/hearings.php?day=2024-07-31

Please take the time to go through this legislation and submit any comments or information by clicking on the Submit Online Comments button.

At this point in time, NAGO is adamantly opposed to all proposed legislation scheduled on Monday, July 29th. (LB7-LB12, and LB14) It has been shared that the EPIC Option legislation is to be scheduled for Wednesday, July 31st, at 930am, unfortunately, as of Saturday evening at 11pm, there is no mention of EPIC Option being listed on the Wednesday schedule. An update will be provided when the legislation becomes available and online comments are activated.

If you would like additional insight or talking points on EPIC Option, please visit EPICOption.org or review our previous Call to Action – https://atomic-temporary-189165296.wpcomstaging.com/2024/07/20/free-the-tax-slaves

The Pillen Plan

The legislation introduced on behalf of the governor consists of LB1, LB2, and LB3. None have been scheduled at this time for public hearing. LB1 has been referred to the Revenue Committee, and LB2 and LB3 have been referred to the Appropriations Committee.

Until the bills are scheduled for public hearing and online comments are made available, please continue to reach out to the committee members and your state senator!

EMAIL the Revenue Committee Members:

Sen. Lou Ann Linehan, Chairperson – llinehan@leg.ne.gov
Sen. Brad von Gillern, Vice Chairperson – bvongillern@leg.ne.gov
Sen. Joni Albrecht – jalbrecht@leg.ne.gov
Sen. Eliot Bostar – ebostar@leg.ne.gov
Sen. George Dungan – gdungan@leg.ne.gov
Sen. Kathleen Kauth – kkauth@leg.ne.gov
Sen. Fred Meyer – fmeyer@leg.ne.gov
Sen. Dave Murman – dmurman@leg.ne.gov

EMAIL the Appropriations Committee Members:

Sen. Robert Clements, Chairperson – rclements@leg.ne.gov
Sen. Anna Wishart, Vice Chairperson – awishart@leg.ne.gov
Sen. Christy Armendariz – carmendariz@leg.ne.gov
Sen. Myron Dorn – mdorn@leg.ne.gov
Sen. Robert Dover – rdover@leg.ne.gov
Sen. Steve Erdman – serdman@leg.ne.gov
Sen. Loren Lippincott – llippincott@leg.ne.gov
Sen. Mike McDonnell – mmcdonnell@leg.ne.gov
Sen. Tony Vargas – tvargas@leg.ne.gov


Talking Points (LB1, LB2, LB3)

LB1 Linehan Introduction Adopt the Property Tax Growth Limitation Act, the School District Property Tax Relief Act, and the Advertising Services Tax Act and change revenue and taxation provisions
https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=58119

This bill is going to need serious work in order to earn the nickname of EPIC Lite. Every time one looks deeper, another problem is found. Thursday, we shared a letter from Senator Erdman following the end of the first day of the special session ( View post here – https://www.facebook.com/100068558674036/posts/pfbid0UDp6BjaeewUKQv29hBZV8y6dUdhj1prCw93ZKqBktRFSpxyNbYXu8kAgdETFbzKhl/ )
We believe Erdman’s assessment has been accurate. One point we’d like to highlight is the sections where you can see the contradictions in taxation on agricultural equipment. It is a shift from including the agricultural equipment under property taxes to a single point of taxation at the time of sale. Which doesn’t exactly qualify as an elimination of taxation on agricultural equipment…

The section of LB1 that Pillen will tout… it’s a 100% tax exemption agricultural equipment from property taxes.
Here’s the rest of the section.
But. Here’s the part where they do tax agricultural machinery…



Earlier on Saturday, a post was shared by the Nebraska Libertarian Mises Caucus that brought to light a section on page 95 of LB1 that would reimplement taxation on the sales/purchase of silver and gold! A measure that was just recently passed in order to protect the gold standard! ( View the post here – https://www.facebook.com/share/p/CguQimnzefaR1EYf/?mibextid=oFDknk ). Fortunately, this issue has been caught early, and senators are working to fix this section.

LB1 is also the train intended to shift funding from property taxes over to alternative state funding. Unfortunately, the ability for school districts to up their tax ask remains.
It is fair to point out that LB1 does impart a hard cap on the tax increase a school district may raise each year at 3%. Should they request more, it would require an audit as well as a vote by the people to approve.
The problem remains that A. “alternative state funding” still comes from Nebraska taxpayers, obviously, so where is the decrease in burden on taxpayers? and B. the schools get more state funding AND have no incentive or requirement to cease the ever increasing tax ask, even if it’s lesser, there’s no decrease. The infamous decrease in the increase.

So.
How do they plan to increase this alternative state funding?
Through various increases in “sin taxes” or “luxury taxes” and the changes described in LB2 and LB3.


LB2 Clements Introduction Provide, change, and eliminate appropriations for operations of state government
https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=58053

LB3 Clements Introduction Provide, change, and eliminate provisions relating to funds and fees
https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=58118

These three bills all work together. LB1 is the main bill, while LB2 and LB3 work to shift the funds needed to keep the educational lobbyists happy. Several agencies and programs will face funding cuts (many with the hopes they obtain more federal funds – yet another thing to keep an eye on), we hope to provide a succinct list prior to the hearings being scheduled and online comments opening up.

Conclusion

It’s important to understand that there is little consensus in the direction of property tax relief among our state representatives. This issue is not cut and dry between Republicans and Democrats. There are several factions including, Pillen supporters, Ricketts/Slama supporters, EPIC Option supporters and their opposition, and then you have the democrats who want to tax every “luxury purchase” or release inmates and parolees. Needless to say, it’s all over the place at the Unicameral!

Our goal at NAGO is to continue to advocate for a complete overhaul of our tax system and to transition into a more constitutionally driven process. EPIC Option remains to be the ONLY proposal that provides for the total reform needed to bring this ship back upright.

Please continue to reach out to our representatives and plan to join us at the Capitol on Wednesday, July 31st, at 930am to support EPIC Option! ( Stay tuned for updates on calls to action and more information as it becomes available! )

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