Revenue Hearing February 14, 2019

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Revenue Hearing February 14, 2019 Transcript Prepared by Clerk of the Legislature Transcribers Office Revenue Committee February 14, 2019 Rough Draft LINEHAN: Good afternoon. Hello. We're going to call the meeting to order. So I am sorry it's crowded. Well, I'm not sorry it's crowded. That's not what I meant to say. I'm sorry we don't have a bigger room. Because we're starting early, we don't have an overflow room. Once the committee hearing is over across the hall at 2:30 we'll have an overflow room. But we have to kind of just tough it out-- Nebraskans can-- until 2:30. It might even be a little later. So I'm going to ask everybody to be-- and this is even in the back-- the door is open. If we're going to have the doors open, which I would like to do, let's just make sure that it's very quiet out in the hall, OK, because sometimes when we have the doors closed and then open, it's very loud. So we're going to have-- if we're going to leave-- if we're going to let people come and go, we're going to have to be quiet out in the hall, too. So now let's start with official rules. Welcome to the Revenue Committee public hearing. My name is Lou Ann Linehan. I'm from-- that's what I mean-- Elkhorn, Nebraska, and I represent the 39-- Legislative District 39. I serve as Chair of this committee. The committee will take up bills in the order posted. Our hearing today is your public part of the legislative process. This is your opportunity to express your position on the proposed legislation before us today. If you are unable to attend the public hearing and you would like your position stated for the record you must submit your written 1 of 479 Transcript Prepared by Clerk of the Legislature Transcribers Office Revenue Committee February 14, 2019 Rough Draft testimony by 5:00 p.m. the day prior to the hearing. To better facilitate today's proceeding, I ask that you follow the fo-- excuse me, abide by the following procedures. Please turn off cell phones or other electronic devices. When you're ready to testify-- and this is going to be really important today. Please move to the front of the room so we can save time and not be sitting in the back when you're up next in order. The order of the testimony is the introducer, the proponents, opponents, and neutral. But today we're going to change it up. Hopefully, you all know this. We're going to go five proponents, five opponents, one neutral, then go back to five proponents, five opponents, and one neutral, hopefully, so we give everybody a chance. We're also going to-- if you're going to be testifying, please complete the green form and hand it to the clerk when you come up to testify. If you have written materials and would like to be distributed to the committee, please hand them to the page. And we're lucky-- because we start early today there was a little disconnect, so we only have one page. So please get to her as soon as you can and be understanding if she has to make copies for you. When you begin to testify please state and spell your name for the record. Please be concise. And again today we're going to limit it to three minutes so you will have two minutes on green-- Grant, is this right? Two minutes on green, one minute on yellow. And I'm going to be tough; when it's red 2 of 479 Transcript Prepared by Clerk of the Legislature Transcribers Office Revenue Committee February 14, 2019 Rough Draft you're done, because other-- we want everybody that came to have an opportunity. If your remarks were reflected in previous testimony or you would like your position to be known but do not we wish to testify, there are white forms at the back where you can sign up and say your position and that will be included in the official record. Please, when you're testifying speak directly into the microphone so our transcribers are able to hear your testimony clearly. To my immediate right is legal counsel, Mary Jane Egr Edson. And to my immediate left is research now-- analyst Kate Bergquist. At the end on the left of the table is committee clerk, Grant Latimer. And with that, I would like the senators to introduce themselves. I think Senator Kolterman will be here. I'm sure Senator Groene is going to be here. Senator Lindstrom is not going to be here today, he's ill. And then-- FRIESEN: Curt Friesen, District 34, Hamilton, Merrick, Nance, and part of Hall County. CRAWFORD: Good afternoon. Senator Sue Crawford, District 45, which is eastern Sarpy County. BRIESE: Tom Briese, District 41. LINEHAN: Senator McCollister is introducing a bill in another committee, so he'll be in. 3 of 479 Transcript Prepared by Clerk of the Legislature Transcribers Office Revenue Committee February 14, 2019 Rough Draft GROENE: Senator Mike Groene, Lincoln County, District 42. LINEHAN: And right now we have one page. Katie, you going to stand up so we can see you? Thank you for being here. Please remember that senators may come and go during our hearing as they may have bills to introduce in other committees. Please refrain from applause or other indications of support or opposition. I'd also like to remind our committee members to speak directly into the microphones. And we-- another reason-- microphones don't amplify our voices, we just-- it's for recording purposes and for TV. So we need to speak so people can hear us loud enough. Lastly, we are an electronics equipped committee. Information is provided to us electronically as well as in paper form. Therefore, if you see committee members referencing information on their electronic devices be assured that your presence here today and your testimony are important and is critical to our state government. So with that we will begin with LB314. Senator Briese. Good afternoon. BRIESE: Thank you and good afternoon, Chairman Linehan and members of the Revenue Committee. My name is Tom Briese, T-o-m B-r-i-e-s-e, and I'm here today to present LB314. LB314 is a comprehensive property tax relief proposal that accesses revenue from a variety of sources and dedicates that-- the vast majority of it to increase school funding and the Property Tax Credit 4 of 479 Transcript Prepared by Clerk of the Legislature Transcribers Office Revenue Committee February 14, 2019 Rough Draft Fund. Property taxes are choking off economic growth in our state. With the sixth to seventh highest residential property taxes in the nation property taxes are impeding the dream of homeownership for young couples across our state. Comprising 30 to 40 percent of a house payment, they are forcing young couples out of the housing market. The third to fifth highest agricultural property taxes in the nation are impeding economic growth in our rural areas. Ag bankruptcies are climbing precipitously. Property taxes are one of the largest line item expenses for our ag producers and contributing to the red ink in agriculture. Nebraskans from one end of the state to another are demanding property tax relief and they deserve property tax relief. And I'd like to welcome everyone to the hearing today, also. I look forward to hearing from all stakeholders, whether in support or opposition. I look forward to hearing from folks to make their case as to why this is good legislation and why they oppose something. This is the day to make your case, but it's also time for everyone to reflect on property tax relief and reform and their position on this issue. And I believe it's time for everyone, including lobbyists and politicians, to decide whether they want to be part of the solution or if they want to stand in the way of the solution. So we have to ask ourselves, how are we going to get there? We can talk about controlling spending, we can talk about cutting our way there 5 of 479 Transcript Prepared by Clerk of the Legislature Transcribers Office Revenue Committee February 14, 2019 Rough Draft and many of us have bills to help us do that. But when we collect 50 percent more in property taxes and income taxes and 70 percent more in property taxes and state, motor-- local, and motor vehicle sales taxes, we have to talk a lot-- about a lot more than spending. And I believe that the responsible tax policy must do several things. It must provide fairness and balance in our tax structure. It must do this sooner rather than later, and it must contain a path forward as to how it will be funded. So we have to talk about new revenue. We aren't going to accomplish much of anything without accessing new revenue to be used to offset property taxes. So let's begin with the revenue components of LB314. I'll first noted-- note that the green copy contained a remote seller sales tax collection mechanism. As we have other bills addressing this issue the amended version deleted this provision. LB314 would expand our sales tax base by eliminating a host of sales tax exemptions and there should be a comprehensive list of those in the fiscal note and most of those exemptions and exclusions are listed on an exhibit I passed out and that exhibit indicates how many of these items are taxed in other states and to the extent known, how many states tax the item in question.
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