About Independent Cattlemen of Nebraska

Press Release

From: Independent Cattlemen of Nebraska

Contact Person: Dave Wright, 402-929-0339 or Al Davis, ICON Treasurer, 402-458-2758

Date: February 17, 2009

Proposed Change in the Property Tax Credit Act Directly Affects Ranchers and Farmers

A bill sponsored by Senator Tom White of District 8 in Omaha will change the Property Tax Credit Act, which has recently given farmers and ranchers across the state a break in real estate taxes. LB 13 would take the property tax relief from the agricultural sector and give it to homeowners.

White has introduced LB 13, and ICON directors have named this bill as one they are closely watching. In essence, it would change the property tax credit currently received by landowners to be a tax credit for urban homeowners. White feels his bill will not have much luck this year. A hearing for the bill is scheduled for Friday, February 20. It is also possible the property tax credit will be abandoned when the final budget cuts are in.

In a conference call with ICON Directors, White said he was alarmed at the amount of money leaving the state because of this property tax credit. For example, he noted that Ted Turner received $73,000 in tax credits last year. He argued that Nebraska cannot keep giving money away to non-resident landowners.

The Nebraska Farmers Union estimates that 50% of land in Nebraska is owned by people who don't live in the state. White assured ICON directors he understands the situation in rural Nebraska and the ongoing people-drain.

He wants to take a serious look at changing Nebraska's tax code. He stated that the state needs to turn things around, likening the situation to the third quarter of a game where rural Nebraska is losing badly. He believes a tax code that rewards people who live and work on the land is essential, but the way the state collects taxes needs to change, with more income or sales tax revenue being generated.

If things don't change, White believes it will kill the family farm. He suggested making owning land in Nebraska economically challenging for those who don’t live on it, emphasizing that time is running out.

Al Davis, ICON Director and Treasurer from Hyannis, questioned White about the burden such a change would place on the economically challenged rural economy. Davis explained that if he sells a calf for $560, $110 of that goes toward property taxes. The small tax credit currently provided makes farming a bit more viable.

White acknowledged that rural dwellers are often land-rich but cash-poor. However, he believes the change needs to start somewhere, suggesting that more money should be funneled to small farmers rather than wealthy landowners like Ted Turner. He characterized his proposal as a short-term fix rather than a long-term solution.

Director Chris Abbott of Gordon emphasized that teamwork will be required to make meaningful changes and that educating urban residents on these issues is critical. He encouraged starting a statewide conversation to spark action.

Independent Cattlemen of Nebraska
"Solid as a windmill. Always working for the independent producer."

The mission of the Independent Cattlemen of Nebraska (ICON) is to protect and promote the interests of Nebraska's independent cattle producers. The organization's office is located in Hyannis, Nebraska, and membership can be obtained by calling (308) 458-7282.