We learned this week through an article in the North Platte telegraph of Steve Erdman's proposed bill (LB28), which would freeze the property owner's taxable value to the previous year's valuation if the Tax Equalization and Review Commission (TERC) hasn't settled the owner's appeal by the following spring. Erdman's bill is intended to help clear the docket and ease the burden on tax payers as the protests are settled. This bill was discussed Wednesday in a Unicameral public hearing 

TERC is a constitutional body created in 1995 to provide a cheaper, simpler way to appeal the assessment of property in Nebraska. Erdman's proposal was spawned by property owners who complained that it was unfair to pay increased property taxes while waiting on the wheels of government to grind its way to a decision, often times years later. "This is an opportunity for us to give the taxpayer a right to pay the right taxes," says Erdman. Doug Kagan, founder of Nebraska Taxpayers for Freedom, cheered LB28 by saying that "LB28 is a necessary solution to a continually aggravating problem." 

One opponent of LB28 is Nebraska Association of County Officials Executive Director Jon Cannon, called Erdman's bill "well-considered and well-intended" but said "it's going to create a hole in the budget" for the local governments. Erdman gave a poignant rebuttal stating that "if those counties are running on that thin a budget, they need to have somebody else doing their budget." After Cannon testified against LB28, Erdman also said to the committee that he'd send it an amendment that would abolish TERC and send appeals of valuation to the district courts.  

TERC's docket size fluctuates, but averages about 1500 cases per year over 10 to 12 years. The resolutions outcomes are about a 50-50 split between counties and taxpayers. Erdman also was quoted as saying, "refund amounts due most protesting taxpayers are significant to them, but minuscule for the local government that spend their money."

We will continue to watch this bill as it makes is way through the process in Lincoln in the coming weeks.  The Sidney Sun telegraph had a recap this week of all of Steve Erdman's 4 bills being given a hearing. Be sure to check it out.