Governor Pillen discusses property tax plans ahead of 2026 legislative session
GRAND ISLAND, Neb. (KSNB) - Governor Jim Pillen outlined his property tax reduction strategy during a Thursday visit to Grand Island, expressing opposition to ballot initiatives while discussing potential changes to sales tax exemptions ahead of the 2026 legislative session.
The legislative session begins Jan. 7, just 33 days away. Pillen, who campaigned on property tax reduction in 2022, will be in the middle of his re-election campaign when the session ends.
Property tax remains top priority
Pillen said he is working to find solutions for property owners who struggle to pay taxes on homes they have owned for years. He also wants younger generations to be able to afford houses.
“This tax shift has become astronomical, and it’s the only way we can solve the problem,” Pillen said.
The governor added that the state needs to shift how taxes work while maintaining revenue for state operations.
“Just think of all the services that we buy,” Pillen said. “We don’t have one sales tax. Those are things that can create revenue to run the state. We have to have revenue. We’re decreasing spend by improving services and decreasing the cost, but we can’t do it all. We have to get the revenue.”
Opposition to ballot initiatives
Pillen criticized ballot initiatives like EPIC that would eliminate property, income and corporate taxes in favor of a consumption tax.
“Tax policy, making policy, that’s why we have the unicameral,” Pillen said. “Ballot initiatives are not the way to have policy take place. We’re asking Nebraskans to vote on things that you just can’t decide in 15 seconds in the voter booth. It’s nuts. That approach of solving problems is not going to work for generations to come.”
Pillen said he does not think voters receive enough explanation on ballot measures and is concerned people might not understand what they are voting for.
Sales tax exemption changes possible
The governor said the state may need to eliminate some sales tax exemptions to generate revenue while cutting property taxes. He discussed the possibility of taxing items like soda and other nonessential products.
When asked about taxing groceries, Pillen said he does not want to tax anyone more but emphasized the need to fix the property tax crisis.
“When we fix the property tax crisis, we will grow,” Pillen said. “That takes a billion, 250 million. Let’s get sales tax on items that people can make decisions on, and we all have to participate in it to solve the property tax crisis. It really is simple. We just gotta make sure that we all are a part of it.”
Pillen said he hopes to continue decreasing the state budget in the next session, which he believes will help lower property taxes.
