Get updates delivered to you daily. Free and customizable.
Nebraska Examiner
Bill to give relief to NE renters draws a few backers, no opponents, to testify at hearing
By Cindy Gonzalez,
1 day ago
State Sen. Eliot Bostar of Lincoln listens to testimony during a Revenue Committee hearing. July 29, 2024. (Zach Wendling/Nebraska Examiner)
LINCOLN — In the midst of numerous proposals facing the Legislature to offer relief to property owners, a measure aimed at carving out help for a different demographic, renters, garnered backing Monday from a dozen supporters.
Two of them testified during a public hearing before the Revenue Committee, and 10 others submitted written comments.
No one spoke in opposition, but three issued objections in writing.
Under Legislative Bill 14, introduced by State Sen. Eliot Bostar of Lincoln, renters would be eligible for a refundable income tax credit of 5% of their lease expenses during the taxable year.
The annual cost, if fully claimed, was estimated at $153 million, according to a fiscal note based on Census data showing about 260,000 occupied units within the state paying a median monthly rent of $983.
Bostar told the committee he suspected perhaps only 10% of renters would take advantage of the credit at first.
He said the idea stems in part from the belief that landlords who may see a property tax drop as a result of the ongoing special legislative session won’t necessarily pass the savings on to their tenants.
“In the short term, I don’t expect rents to go down,” Bostar said.
Meanwhile, renters likely would be impacted negatively from the rise in certain sales and other taxes proposed as revenue generators under Gov. Jim Pillen’s property tax relief plan.
State Sen. George Dungan of Lincoln said he sees Bostar’s proposal as trying to offset some of that imbalance.
Erin Feichtinger, policy director of the Women’s Fund of Omaha, who spoke in favor of the Bostar proposal, said the state is in crisis when it comes to renter evictions and availability of housing that’s affordable.
She said the average number of statewide eviction filings have gone up from 6,286 between 2016 and 2019 to 10,898 in 2023 due to rising rent and lack of affordable housing.
With an apartment vacancy rate well below the “healthy” threshold, Feichtinger said she doesn’t foresee landlords lowering rent on their own for the 33% of Nebraska households who rent.
“Landlords are not competing for tenants, tenants are competing for landlords,” she said.
Feichtinger said advocacy agencies can launch outreach efforts to help ensure that renters can take advantage of the potential tax credit.
Carter Thiele, policy and research coordinator with the Lincoln Independent Business Association, said renters often are overlooked during tax policy discussions, and the bill promotes “economic fairness.”
In addition, Thiele said, financial relief to renters would stimulate economic activity and support local business.
In response to a questions by State Sen. Kathleen Kauth of Omaha, Bostar said his proposal would apply only to a renter’s primary residence.
The Revenue Committee took no action Monday on the measure.
State Sen. Terrell McKinney of North Omaha, also has proposed a renter-focused proposal. Legislative Bill 20 calls for a refundable credit against income tax to renters of 4% of total annual rent, or $200, whichever is greater, not to exceed $1,000.
A public hearing on McKinney’s LB 20 is scheduled for Tuesday morning before the Revenue Committee.
Get updates delivered to you daily. Free and customizable.
Welcome to NewsBreak, an open platform where diverse perspectives converge. Most of our content comes from established publications and journalists, as well as from our extensive network of tens of thousands of creators who contribute to our platform. We empower individuals to share insightful viewpoints through short posts and comments. It’s essential to note our commitment to transparency: our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. We strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation. Join us in shaping the news narrative together.
Comments / 0