SUPPORT COALITION
Executive Branch
- Governor Jim Pillen — Property tax reform is a centerpiece of his 2026 reelection campaign. In July 2026, he unveiled a three-year phased property tax reduction plan alongside Linehan and Clements. The plan proposes broadening the tax base, removing certain exemptions, and reducing the local property tax burden over three years. The income tax rate was already reduced from 5.2% to 4.55% for 2026.
Legislative Leadership
- Sen. Lou Ann Linehan (District 8, Elkhorn) — Chair, Revenue Committee; co-sponsor of Pillen's July 2026 property tax reduction proposal; the primary legislative driver of reform. Contact: llinehan@leg.ne.gov
- Sen. Rob Clements (District 2, Elmwood/Papillion) — Chair, Appropriations Committee; co-sponsor of Pillen's proposal; controls the fiscal mechanics of any replacement revenue. Contact: rclements@leg.ne.gov
- Sen. Bob Andersen (District 49) — Sponsor of LR 255, the Revenue Committee interim study examining fiscal, constitutional, and administrative implications of property tax reform. Contact: bandersen@leg.ne.gov
Grassroots / Ballot Initiative
- EPIC Option 2.0 — Circulating two petitions for the 2026 ballot: (1) a statutory measure to cut taxable valuation of all property by 50%; (2) a constitutional amendment to cap annual property tax increases. Represents the most aggressive reform flank; creates pressure for Pillen's more moderate approach.
OPPOSITION / SKEPTICS COALITION
Local Government
- Nebraska Counties Association (NACo) — Tracking state preemption of local authority; primary institutional voice for county governments warning of service cuts if property tax base is significantly reduced. Actively monitoring property tax preemption trends alongside 40 other states. Contact: nebraskacounties.org
- County Governments — Facing potential $9–12 billion revenue impact from proposed constitutional amendments; warning of cuts to county services, roads, and public safety.
- City/Municipal Governments — Concerns parallel counties; local funding for police, fire, and infrastructure tied directly to property tax revenue.
School Funding
- K-12 Education Advocates — School funding in Nebraska is substantially tied to property tax revenue; elimination or deep reduction proposals threaten funding adequacy for rural and urban districts alike.
Legislative Skeptics
- Bipartisan skeptics in the Legislature — Both Republican and Democratic senators have expressed concerns about the scope and revenue-replacement mechanics of aggressive elimination proposals. No unified bloc identified; opposition is diffuse.
CONTESTED / SWING STAKEHOLDERS
Agricultural Interests
- Farm Bureau and agricultural landowners — Split position: large landowners benefit from property tax reduction on farmland, but agricultural land assessment methodology (the subject of LR 459) is its own debate. Changes to income-based assessment could cut valuations — benefiting farmers but reducing county revenue further.
Business / Commercial Real Estate
- Commercial property owners — Generally support lower property taxes but wary of replacement revenue mechanisms (e.g., expanded sales taxes or removal of exemptions) that could shift burden.
- Data Center Industry — Already received $519M in property tax exemptions since 2021 per Governor's office; any reform that removes or caps exemptions creates exposure. Political dynamic: Governor's office released these figures, signaling potential willingness to revisit exemptions as a revenue offset.
Gubernatorial Race
- Lynne Walz (Democratic challenger) — Has framed the state's fiscal position as a "Pillen budget crisis"; her platform (released late July 2026) addresses fiscal challenge but has been criticized for lacking revenue replacement specifics. Her position creates accountability pressure without a clear alternative coalition.
KEY LEGISLATIVE VEHICLES
- LR 255 (109th) | Sponsored by Sen. Andersen | Fiscal/constitutional implications of property tax reform (LR12CA) | Referred to Revenue Committee — May 19, 2025
- LR 459 (109th) | Sponsored by Sen. Dover | Agricultural land assessment based on potential income | Referred to Revenue Committee — March 30, 2026
- LR 400 (109th) | Sponsored by Sen. Spivey | State economic development programs and incentives | Referred to Banking, Commerce & Insurance — March 30, 2026
- LB 1071 (109th) | Biennial appropriations FY2026-2027 | Signed into law — June 4, 2025
- LB 64 (108th Special) | Sponsored by Sen. Wayne | Tax credits, local option sales taxes, property tax relief | Indefinitely postponed — August 20, 2024
REVENUE COMMITTEE — KEY CONTACTS
- Sen. Lou Ann Linehan | Chair | llinehan@leg.ne.gov
- Cori Bierbaum | Committee Clerk | cbierbaum@leg.ne.gov
- Elizabeth Stangl | Committee Clerk | estangl@leg.ne.gov
- Dan Wiles | Senior Legislative Aide | dwiles@leg.ne.gov
CONTESTED ISSUES — FAULT LINES
- Scope — Gradual reduction (Pillen/Linehan) vs. elimination (EPIC Option 2.0)
- Replacement revenue — Income tax cuts, base broadening, exemption removal, or local option sales taxes; no consensus
- Local authority — Whether state can/should preempt local property tax decisions; counties and cities firmly opposed
- Agricultural land assessment — Income-based vs. market-based valuation directly affects farm-country property tax burden and county revenue
- Data center exemptions — $519M in exemptions since 2021; political vulnerability as a revenue offset in reform math
- School funding sustainability — Any reform must address K-12 funding adequacy or faces coalition collapse
- Constitutional vs. statutory — EPIC's constitutional amendment approach harder to reverse; Pillen's statutory path more flexible
SOURCES
- Interim study on fiscal, constitutional, and administrative implications of adopting LR12CA (property tax reform); referred to Revenue Committee
- Interim study on assessment of agricultural land value based on potential income; referred to Revenue Committee
- Interim study on economic development programs, policies, and incentives administered by the state
- Biennial appropriations adjustment bill, FY2025–2027; signed into law
- Legislative intent relating to tax credits, local option sales taxes, and a property tax relief program (108th Special Session)
- Gov. Jim Pillen outlines plans to cut state income and local property taxes if reelected
- Nebraska data centers have received $519M in property tax exemptions since 2021
- Nebraska Association of County Officials (NACO) represents county government interests on assessment, levy, and revenue-distribution issues
- Ongoing coverage of property tax policy and the EPIC Option petition drives
- EPIC Option Basics — 2026 Petition Drive (PDF)— official petition language and signature requirements
- Nebraska Examiner — EPIC Option 2.0 regroups for 2028
- Nebraska Public Media — EPIC organizers launch fundraising petition effort
