Taxes move people.

That’s not a philosophical statement about someone’s emotional connection to their county’s property tax levy. It means a state’s tax policies play a significant role in where people decide to put down roots.

And for many years, Nebraska saw how their high state taxes were costing them residents and making the Cornhusker State less and less competitive.

For years, Nebraskan’s average property tax bill was $500 more than the national average and equaled the seventh-highest effective rate in the nation. Nebraska also had the highest income tax rate of any state in the Midwest. And finally, Nebraska was the only state in the country without tax incentives encouraging people to donate to scholarships for lower income families.

All these policies put together made Nebraska one of the least competitive states according to Tax Foundation rankings and ALEC’s Rich States Poor States report.

Nebraska’s high taxes were hurting Nebraskans and costing the state residents.

That is, until the Platte Institute decided to do something about it.

Platte Institute Leads the Charge for Tax Reform to Help Nebraska Families

For over a decade, the Platte Institute has been calling for transformative changes to Nebraska’s tax structure. Polling shows how taxes and the economy are some of the most important issues for Nebraskans. And Platte’s team has been the steady voice for the necessary tax reforms Nebraska needs.

Platte’s consistent publication of research, blog posts, and podcasts has positioned them as the undeniable experts on the state’s tax policies and the reforms needed.

As Platte began their campaign to reform the state’s property taxes, income taxes, and school choice policies, they partnered with other expert policy groups like the Tax Foundation, ALEC, and the National Taxpayers Union. Creating this coalition allowed Platte to not only provide expert analysis and guidance—but leverage their partners to provide additional legislative outreach and testimony for reform.

For the 2023 session, there were three bills that Platte and their coalition helped guide through the legislature:

• LB243 provides significant property tax relief for Nebraska homeowners in the form of reforming how different government levies contribute to Nebraskans property tax bills. LB243 also includes significant new tax credits and reforms that will save homeowners millions.
• LB754 provides Nebraskans with desperately needed income tax relief. Before LB754, Nebraska’s highest property tax rate of 6.64% kicked in at salaries of just $29,000+. But LB754 reduced the state’s top rate to 3.99% and lowers taxes for every Nebraskan making over $18,000 a year.
• LB753 provides Nebraska taxpayers with the opportunity to donate to scholarships for students to attend higher quality schools that better fit their needs.

The Platte Institute team lobbied policymakers on the facts of each of these reforms and guided them through any questions or concerns they had on the pieces of legislation. Platte also gave Governor Pillen’s team direct access to Platte experts and their coalition partners for any data needs or questions about the bills.

The weekly email from Platte’s CEO, Jim Vokal also gave Platte’s team a direct line to nearly 20,000 subscribers. Through these emails, Platte was able to engage with Nebraskans on a regular basis and encourage calls to action with their state legislators.

Additionally, Platte’s team worked directly with key Revenue Committee legislators and the governor’s team to craft and improve all the various tax reforms being proposed. In multiple Revenue Committee hearings, Platte experts provided the most notable testimonies to legislators.

Platte’s Efforts Lead to Tax Relief in the Cornhusker State

Thanks in large part to Platte’s research, coalition-building, advocacy, and strategy, LB243, LB754, and LB753 were all signed into law in 2023.

Because of these legislative victories, Nebraska moved from 29^th to 16^th in the Tax Foundation’s Business Climate Index and from 36^th to the top 25 with ALEC’s Economic Outlook ranking.

For years to come, Nebraskans will reap the benefits of these reforms. Not only will homeowners and working Nebraskans receive real tax relief, but Nebraska students struggling to succeed will have new opportunities to receive the education they need—and deserve.

Tax policy doesn’t always grab the most headlines, but its impact on people’s lives is undeniable. Now, thanks to the Platte Institute, Nebraskans finally have the tax relief they’ve been calling for for years.

For their work to reduce taxes for Nebraskans, the Platte Institute was a finalist in SPN’s Bob Williams Awards for Outstanding Policy Achievement—in the “Biggest Home State Win” category.

Related Reading

Nebraska Leads the Great Plains Tax Sweep
Platte Institute and State Policy Network in National Review