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Nebraska Governor Proposes 40% Property Tax Cut, Faces Opposition

Jim Pillen's plan includes potential sales tax increase and support for controversial anti-LGBTQ bill.

  • Nebraska Governor Jim Pillen has proposed a 40% reduction in property taxes, which would cut $2 billion from the $5 billion collected across the state in 2022.
  • Pillen's plan to fund the tax cut includes imposing a hard spending cap on local governments, closing several tax loopholes for special interests, transferring $274 million from state agency cash funds toward property tax relief, and raising the cigarette tax by up to $2 a pack.
  • The governor has also suggested increasing the state's sales tax by 2 percentage points to 7.5%, which would be the highest in the nation. However, he has not found support for this proposal in the state's legislature.
  • Pillen's tax proposals have drawn criticism from both sides of the political spectrum, with the Nebraska Democratic Party arguing they represent a massive shift in taxes onto working and middle-class families, and the conservative Tax Foundation warning they could hurt Nebraska businesses by driving consumers to neighboring states with lower sales taxes.
  • In addition to his tax proposals, Pillen has also expressed support for a controversial bill that would restrict transgender student participation in high school sports and limit trans students' access to bathrooms and locker rooms.
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