KEARNEY — An estimated crowd of about 100 upset property owners overflowed from the commissioners meeting room into the hallway at the Buffalo County Courthouse Monday evening.
Many in the crowd carried pink postcards sent last week by Buffalo County officials to alert property owners about likely tax increases next year. Sending the postcards and conducting the hearing Monday were part of an effort by state lawmakers to educate and forewarn Nebraskans about their property taxes.
The pink postcards and tax numbers printed on them got people’s attention.
“We’re taxing ourselves to death, and 60% of it goes to schools,” one person in Monday’s crowd complained.
Scott Frauen was among many Buffalo County residents who brought his pink postcard with property tax info to Monday’s truth in taxation hearing.
“I’m like this farmer here, I can’t pull money out of my butt,” said another.
“You’re taxing us out of our home,” said Karen Frauen of Kearney.
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During the “truth in taxation” public hearing, representatives of taxing subdivisions briefly reviewed their spending plans for the year ahead.
As they heard about the budgets and property taxes to pay for them, some in the crowd suggested spending cuts to reduce the tax load, but those ideas were floated in the 11th hour of budget season.
Mid to late summer is when most governmental entities are building their budgets and conducting hearings when the public is welcome to comment. The hearings are advertised and are open to the public, but most of those meetings are poorly attended.
Monday’s truth in taxation hearing filled the county board’s meeting room, but many of the taxing entities participating in the hearing have just a couple of days before their elected boards formally approve the budgets for fiscal year 2022-2023.
Brad Kjar, the superintendent at Ravenna Public Schools, suggested after the meeting that property owners should communicate with their school board members. Unless there’s communication, spending decisions could be made in a vacuum.
Brad Kjar, superintendent of Ravenna Public Schools, shares an overview of his school's budget for fiscal year 2022-2023. The district kept spending in control for seven years, he said, but inflation is making that difficult for the budget year that's ahead.
“I just hope the people remember to talk to their school boards,” said Kjar.
He said during his presentation that Ravenna’s tax base has fluctuated during the past seven years, but property tax increases were held in check until this year when high inflation made spending decisions challenging for many schools, counties and cities.
Some in the crowd were not aware of the annual budget cycle or that budget sessions are advertised and that public input is welcome. Many said they are frustrated and feel helpless to do anything about the heavy tax load.
“The retired people are getting it worse because they can’t go ask for a raise,” one person said.
“If this continues, you’re going to force me to move to a tax-friendly state,” another said.
“The college is a sewer of money,” said another.
Some of the officials and one spectator said Nebraskans should educate themselves about state budget and taxation issues.
The spectator who spoke up, Kirby Wilson of Kearney, shared an example how paying attention to tax issue has saved money for some Nebraskans while many others missed the opportunity to reduce their property taxes.
Tax asking numbers
The Legislature, with Gov. Pete Ricketts’ encouragement, has approved significant property tax relief. However, Wilson said many Nebraskans apparently are unaware and failed to claim their relief.
Earlier this year the Nebraska Department of Revenue reported that about 40% of eligible taxpayers did not claim the refund even though it could have greatly reduced their property taxes.
The owner of a $250,000 home could have claimed $1,137 in refunds this year from the income tax credit and another state property tax relief effort.
When 2022 income taxes are due next April, Nebraskans could realize a 30% reduction in their property taxes through various income tax credits. The state provides these credits on property taxes paid to support K-12 schools. Beginning on next year’s taxes, there will be relief on property taxes paid for community colleges.
Officials from several of the school boards represented at Monday’s hearing said they will be making their final votes on the 2022-2023 budgets tonight, Wednesday and Thursday night.
Several in the crowd said they’re now planning to attend the school board meetings to learn more about their schools’ budgets.
Monday’s hearing at the courthouse was among the first being conducted under Nebraska’s new truth in taxation law. Some hiccups were to be expected, Buffalo County Clerk Jan Giffin said. Giffin was charged with organizing the hearing and said next time the meeting will be in a much larger room.
John Lowe
State Sen. John Lowe of Kearney said the hearing appears to have achieved what lawmakers intended, which was to begin educating Nebraskans about important taxing and spending issues.
“It was good to see people here,” Lowe said. “People need to know what’s happening with their money.”
