Today, the Omaha World Herald (https://omaha.com/news/local/business/article_832f7ba8-6d37-4f9a-84f2-79eb43a9afdf.html) covered a study funded by the Aksarben Foundation (https://aksarben.org/). The study shows Omaha is not gaining jobs compared to other cities, and is actually losing jobs. I am still trying to obtain a copy of the study, but I bet it ignores the impact of Nebraska’s annual minimum wage hikes (https://committeetounleashprosperity.com/hotlines/minimum-wage-means-maximum-teen-unemployment/).
As to the study, part of the problem is the lack of focus as to what property owners are paying to government agencies. The sewer separation project in Omaha takes out about $600 annually at least, from property owners. Gretna and Papillion grow because Papillion and Gretna, are not fully part of the Metropolitan Utilities District which collects the fee. This is likely why the Omaha metropolitan area grew, while jurisdictional Omaha lost population.
Jim Vokal, of the Platte Institute, has tried to claim the property tax problem is merely a spending issue (https://rightcheer.substack.com/p/jim-vokal-on-nebraskas-looming-property). I flat out disagree. Part of the problem with Nebraska property taxes are too many taxing entities. The Natural Resource Districts, and Educational Service Units as well as metro transit authorities should not be on the property tax system.
In addition, Nebraska has Permissive Exemptions which exclude hospitals and other organizations if they are nonprofits according to Nebraska law Neb. Rev. Stat. § 77-2714. Apparently, from what information is out there, a for-profit hospital or profit producing entity would have to at least make Payments In Lieu of Taxes, but this is very difficult to trace. How are In Lieu payments determined, and do they match the lost property tax revenue?
I am not an attorney, but I think Nebraska State Attorney General Mike Hilgers should investigate this matter and Nebraska State Auditor Mike Foley should investigate this matter. In fact, there are a number of attorneys who read this blog, I suspect a lawsuit will pop-up, especially if the railroad companies learn what others are failing to pay in regards to these tax payments.
Many people know there are problems with Nebraska property taxes. This is why the EPIC Option came into existence (https://www.epicoption.info/). Nebraska needs to compete with Estonia to have a great tax system (https://www.visualcapitalist.com/ranked-the-best-and-worst-countries-for-taxes/). Unfortunately, few know about Estonia and even fewer can find it on the map.
Good Perspective. We have more than 100 statutory exemptions from Sales Tax and thousands of property, real and personal, owned by Non-Profits, that are also used for personal use by their owners or Directors. I am a strong EPIC2 supporter. The time has come for fundamental change in how and who we tax to move into the digital world with a consumption type tax to replace all the rest. Plenty of revenge, at a low rate of between 8 and 12%, fair and if you buy it, you pay and if you don't buy it, you of course, don't pay. Consolidation of smaller local governmental units, or their elimination is very worth consideration. But my real suggested idea is for all private and public sector dollars that now chase workforce development shift to chasing the jobs instead. That is the problem. We educate very well, and many leave because there is not job here for them. This shift would reverse the brain drain and resolve the tax dilemma. Just saying. Hal.
As usual, this is a very perceptive commentary!