The Platte Institute for Economic Research is a conservative, free market advocacy group and think tank headquartered in Omaha, Nebraska and established by former governor Pete Ricketts in 2007. The group recently commented on Governor Jim Pillen’s property tax relief plan that will be discussed at the next special legislative session in either late July or early August.
The Platte Institute is encouraged the proposed plan includes crucial measures such as hard caps to control local spending, state spending decreases, and the retooling of 1107 credits to fund the plan, resulting in dollar-for-dollar property tax relief for Nebraska property owners.
Jim Vokal, CEO of the Platte Institute, stated, “We are pleased to see that the Governor’s plan aims to provide substantial property tax relief through controlled local and state spending. However, we hope that as the plan moves through the legislature, alternatives to taxing business and agricultural inputs (machinery and energy) and advertising will be considered. These taxes can lead to economic inefficiencies and increased consumer costs.”
The Platte Institute also cautions against the reliance on cigarette tax increases as a revenue source. Vokal emphasized, “History and research show that increases in cigarette taxes can result in unreliable income due to tax avoidance. It’s essential to find stable and sustainable funding mechanisms for the property tax relief plan.”
Additionally, the plan must address valuation increases by decreasing levy rates to completely offset the valuation hikes. This step is vital to ensure that property tax relief is meaningful and effective.
“We applaud Governor Pillen’s goal of reducing property taxes and look forward to being a resource to policymakers and the public as this package moves through the special session,” Vokal added.