Zach Wendling
LINCOLN — A legislative committee advanced a proposal Thursday that would let voters determine whether owner-occupied housing should be valued at a different market value, similar to agricultural land.
The Revenue Committee voted unanimously Thursday to advance Legislative Resolution 2CA, a constitutional amendment that would let the Legislature use a different process to assess the value of owner-occupied housing than it uses for other residential property. If the measure is successfully added to the November ballot and is approved by voters, lawmakers could define “owner-occupied housing” next year and determine that valuation rate.
In 1984, voters approved carving out the way agricultural land is valued. It is currently valued at 75% of actual market value. Most other property is valued at 100%, in line with the Nebraska Constitution.
“All this does is unlock that, if the people approve it,” State Sen. Tom Brandt of Plymouth, who introduced LR 2CA, told reporters after the committee vote. “… This is written simply to give the Legislature another tool.”
Various states value owner-occupied housing differently from other property, including Minnesota, which has numerous rates for different types of property.
Brandt acknowledged that Revenue Committee members expressed some concerns that if LR 2CA became law, it might not help renters. He said that it will take a while to create a different formula to help renters but that LR 2CA would create more parity with ag land.
State Sen. Justin Wayne of Omaha, who has advocated for LR 2CA, said it could be one of the most impactful steps lawmakers could take for future lawmakers to provide more tax relief. He said Wednesday during floor debate it could also let lawmakers go out into their communities and talk about property taxes ahead of the 2024 election.
Speaker John Arch of La Vista, who sets the Legislature’s daily schedule, has said he intends to prioritize bills from the Revenue and Appropriations Committee this special session.
Arch announced he would schedule LR 2CA for debate because State Sen. Lou Ann Linehan of Elkhorn, chair of the Revenue Committee, has indicated it is part of the committee’s package.
Two other constitutional amendments have made it to the floor from other committees but have not been scheduled for debate: LR 1CA, from State Sen. Carol Blood, to prohibit future state-created mandates on local governments without funding; and LR 3CA, from State Sen. Eliot Bostar of Lincoln, which could legalize online sports betting.
State Sen. Kathleen Kauth of Omaha ran a vote count Thursday morning, which she said showed at least 22 lawmakers in full support of Brandt’s LR 2CA, six leaning in support, a handful undecided and about three against it. She said there were multiple senators she didn’t get to talk to.
At least 30 lawmakers would need to approve the constitutional amendment, instead of a simple majority.
If passed, LR 2CA would require companion legislation to appear on the November 2024 ballot. That’s because the current deadline for the Legislature to submit constitutional amendments is four months before the election. Six proposals were introduced that would shorten the window to 60 days.
The Legislature’s Executive Board voted Thursday to indefinitely postpone five of those bills. The sixth proposal, LB 13 from Bostar, remains in the General Affairs Committee but is unlikely to reach the floor.
State Sen. John Lowe of Kearney, vice chair of the Executive Board and chair of the General Affairs Committee, also already tried to defeat LB 13 and joined the effort against the other bills.
If LR 2CA passed without that change, it would go to voters in 2026. Brandt said he will reintroduce the measure in 2025 if it’s not approved this session.
“There’s no smoke and mirrors here,” Brandt said. “It simply is something the Legislature can do.”
Nebraska Examiner Political Reporter Aaron Sanderford contributed to this report.