LINCOLN, Neb. (KOLN) - Nebraska's Revenue Committee is proposing giving people a property tax relief by cutting their property value.
Legislative Bill 974 would keep homes at their actual value this year, but decrease the number to 85 percent its actual value by 2022.
For agricultural areas, the number would go from 75 percent their actual value to 55 percent actual value by 2021.
State senators on the Revenue Committee said it would take money away from the tax dollars given to schools, but the state would give schools the money back through state aid.
If passed, it is expected Nebraska schools would receive $500 million in state aid.
Sen. Lou Ann Linehan said Nebraska ranks among the lowest in the nation in giving schools state aid.
"We are trying to address that by helping our property tax payers whether their farmers, ranchers, homeowners or commercial. Were trying to take the burden off their shoulders and put more on the state," she said.
Lincoln Public Schools has openly opposed similar bills in the past. It said it could lose millions of dollars from this property tax relief.
The Revenue Committee said it is working with Gov. Ricketts, but he has not endorsed the bill yet. The bill will go to hearing on Jan. 22.