The Nebraska Legislature General Affairs Committee recently held a public hearing on two bills that would lower property taxes by using gambling proceeds. One measure would shift $5 million a year in local keno proceeds to a state property-tax credit fund. And a proposed constitutional amendment would legalize casinos and other forms of gambling, and direct the proceeds toward reducing property tax bills. Most of the speakers were strongly opposed to both proposals.
State Senator Curt Friesen said he introduced the keno-proceeds bill because legislators are “looking everywhere” for property tax relief. State Senator Merv Riepe said the bill would impact his community, which is using keno funds to pay off of the Ralston Arena.
State Senator Tyson Larson did not testify on behalf of his proposed constitutional amendment to allow expanded gambling, and no lobbyists or citizens spoke in support of the measure. Nate Grasz of the Nebraska Family Alliance stated, “The proposed constitutional amendment before the committee today is attempting to use a politically expedient issue, property tax relief, to open the door for a politically unpopular one, gambling.”
Omaha City Council President Ben Gray said Omaha would lose $1.4 million in keno profits annually under Legislative Bill 1102. He said if the bill passed, the city would be forced to stop funding programs that benefit youths and former prison inmates as well as the Henry Doorly Zoo & Aquarium.
State Senator Lydia Brasch noted farmers and ranchers are “desperate” for a property tax break. Brasch, a member of the Revenue Committee which determines tax policy, said farmers and ranchers might support expanding gambling but state senators are unlikely to do so.
