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Apr. 23-26, 2019 UNICAMERAL UPDATE News published daily at Update.Legislature.ne.gov Vol. 42, Issue 16 / Apr. 23 - 26, 2019 Sales tax hike would decrease property taxes via additional school aid Members of the Revenue, Education and Nebraska Retirement Systems committees heard input April 24 on a property tax relief proposal. hree legislative committees heard testimony April a joint hearing of the Revenue, Education and Nebraska 24 on a proposal to direct new sales tax revenue Retirement Systems committees. T to the state’s public schools in an effort to reduce The proposal would increase the state sales tax rate from property taxes. 5.5 percent to 6.25 percent, increase the tax on a package Elkhorn Sen. Lou Ann Linehan, sponsor of LB289, presented an amendment that would replace the bill to (continued page 3) Wind turbine decommissioning requirements stall bill that would require owners or reclamation costs necessary for every wind agreement executed on or to remove a wind turbine’s removal of the system. after Jan. 1, 2020, to provide for the A concrete foundation after de- A pending Natural Resources Com- removal of a wind turbine’s founda- commissioning stalled on first-round mittee amendment would replace the tion material and equipment—which debate April 23. bill. It would require a wind turbine the bill defines as anchor bolts, rebar, Introduced by Brainard Sen. Bruce owner who is a party to a wind agree- conduits and concrete—below grade Bostelman, LB700 ment to provide every landowner upon decommissioning. The require- would make any who also is a party to that agreement ment would not apply to a wind person who owns, with information about the materials turbine that is used for repowering operates or man- and equipment that will be removed within 24 months after it would have ages a wind energy from, and that will remain on, the been decommissioned. conversion system landowner’s property when a wind Any void left from the removal of responsible for turbine is decommissioned. Sen. Bruce Bostelman decommissioning The amendment would require (continued page 2) INSIDE: Medicaid managed care restrictions advanced • Prohibition of minor consent defense advanced April 23 - 26, 2019 Wind turbine decommissioning requirements stall (continued from front page) foundation material and equipment wind energy at all and is definitely go- material to be hazardous, Blood said. would be restored to the condition of ing to help the environment,” he said. “This is not good policy that the land prior to the installation of the Hastings Sen. Steve Halloran also benefits all of Nebraska,” she said. “I turbine or to an improved condition. supported LB700, saying its provisions believe this is policy that … picks on a Bostelman said state law requires are a “worthwhile precaution.” He particular industry.” wind energy companies to create said companies that generate renew- Sen. Matt Williams of Gothenburg a plan for decommissioning wind able energy logically should support a also opposed the bill. He said wind turbines when they reach the end of requirement that they leave the land energy development has benefited Ne- their useful lives, but the law does not in as good or better condition than braska by generating property tax rev- specify what those plans must include. they found it when decommissioning enue for counties and lease payments He said companies generally leave a wind turbine. for landowners. Although protecting most of a turbine’s concrete foundation Sen. John McCollister of Omaha the state’s land and environment is in the ground, which he said could af- opposed the bill, saying the proposed important, he said, the bill would cre- fect soil health and the future land use. requirement to remove the entire ate barriers to growing the wind energy Wind turbine owners, not landowners, foundation is “burdensome and un- industry in Nebraska. should be held responsible for remov- realistic.” He said the requirement “I believe LB700 goes beyond what ing that material, Bostelman said. would increase the cost of decommis- is reasonable,” he said, “and I would “We want to make sure that the sioning a turbine by 25 to 35 percent. argue that removal of this [material] land is returned to a natural state so Bellevue Sen. Carol Blood also op- clear to the base could cause more the [landowner] can utilize that land posed LB700, saying it would restrict damage than it would be worth.” in the future,” he said. the right of landowners to negotiate The Legislature moved to the next Sen. Robert Clements of Elmwood contracts with wind energy companies item on its agenda before voting on supported the bill, saying the cost of as they see fit. the committee amendment or LB700. removing the entire concrete founda- She said the bill also would single Per a practice implemented by Speaker tion is only 3 percent of the revenue out the wind energy industry by not Jim Scheer, the sponsor of a bill that that a wind turbine generates during applying the same requirements to is facing a potential filibuster must its useful life. other businesses and utilities that demonstrate sufficient support for a “This is a very small ... requirement place concrete and steel in the ground. cloture motion before the measure will in this bill that’s not going to harm The EPA does not consider either be scheduled for additional debate. g UNICAMERAL UPDATE The Unicameral Update is a free, weekly newsletter published during the legislative session. It is produced by the Clerk of the Legislature’s Office through the Unicameral Information Office. For print subscriptions, call 402-471-2788 or email [email protected]. Visit us online at Update.Legislature.ne.gov, twitter.com/UnicamUpdate and facebook.com/UnicameralUpdate. Clerk of the Legislature: Patrick J. O’Donnell Editor: Kate Heltzel; Writers: Kyle Harpster, Ami Johnson, Mike Malloy; Photographer: Bess Ghormley Printed copies of bills, resolutions and the Legislative Journal are available at the State Capitol room 1023, or by calling 402-471-2709 or 800-742-7456. Status of bills and resolutions can be requested at that number or can be found on NebraskaLegislature.gov. Live video of hearings and floor debate can be viewed on NET2 and at NetNebraska.org/capitol. Senators may be contacted by mail at this address: Senator Name, District #, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604 Assistance provided by the Clerk of the Legislature’s Office, the Legislative Technology Center, committee clerks, legal counsels, journal clerks, pages, transcribers, mail room and bill room staff and the State Print Shop. The Unicameral Update is available as an audio recording from the Nebraska Library Commission’s Talking Book and Braille Service. Call (800) 742-7691 for more information. THE NEBRASKA LEGISLATURE’S OFFICIAL NEWS SOURCE SINCE 1977 PAGE 2 • UNICAMERAL UPDATE • 106TH LEGISLATURE April 23 - 26, 2019 Sales tax hike would decrease property taxes via additional school aid (continued from front page) of cigarettes from 64 cents to $1 and property taxes on his farm have more the state’s budget. impose taxes on bottled water, candy than doubled in the last nine years Also testifying in opposition was and soft drinks, as well as storage, and represent roughly half of his net Larry Dix, executive director of the moving, plumbing, HVAC and certain cropland income in an average year. Nebraska Association of County Of- veterinary services. “With these constant property ficials. He said the proposed valuation The amendment would direct the tax increases and lower commodity reduction would decrease counties’ new revenue to the state’s property prices, we just can’t take it anymore,” property tax base by approximately tax credit cash fund and from there Nietfeld said. $28 billion. to additional school aid. Blaine Wilcoxson testified in op- The reduction would force many The amendment also would reduce position to the amendment on behalf counties to increase their levies in the value of residential, commercial of several organizations representing order to maintain their budgets, Dix and industrial property to 90 percent plumbers, pipefitters and HVAC tech- said, but some could not because they of its actual value for purposes of taxa- nicians. He said the proposed tax on are at or near the statutory 50-cent tion. Agricultural and horticultural plumbing and HVAC services would levy limit. land would be valued for taxation at make it more expensive for Nebras- Renee Fry, executive director at 65 percent of its actual value rather kans to repair or renovate their homes. OpenSky Policy Institute, also op- than the current 75 percent. “These are not luxury services or posed the amendment. She said the Linehan said the proposal also services that are nice to have,” Wil- proposed sales tax rate increase is too would reduce the maximum school coxson said. high and would fall most heavily on levy and make several changes to the Liz Standish, associate superinten- low- and middle-income families. The state’s school aid formula such that dent for business affairs at Lincoln proposal also does not go far enough no school would receive less than one Public Schools, also opposed the mea- to broaden the state’s sales tax base third of its funding from the state. The sure. She said LPS could lose up to $7 by eliminating exemptions, Fry said. increase would boost Nebraska from million under the proposed changes to Ken Herz, president of the Nebras- 47th to 20th in the nation in terms of the state’s school aid formula because ka Cattlemen, gave neutral testimony state aid to schools, she said. the increase in state aid would not on behalf of the Agriculture Leaders “What we’re trying to do is treat offset the district’s lost property tax Working Group, comprising the lead- everybody fairly,” Linehan said.
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