LINCOLN – Sate Sen. Bob Hallstrom outline his carry over bills for 2026 and discussed property valuations in his latest column.

Sen. Hallstrom said a proposed amendment to the state Constitution would prohibit the levying of an inheritance tax. LR13CA would put the issue to a vote in November of 2026.

Nebraska is one of five states with inheritance taxes. Iowa ended its inheritance tax in 2025.

Sen. Robert Clements of Elmwood, who joined Hallstrom in introducing LR 13CA, made ending inheritance tax his priority bill this session. LB468 included tax increases to replace the revenue inheritance tax had provided counties. Clements’ bill was indefinitely postponed.

Regarding tax valuations, Hallstrom said he is working on legislation that would address the share of property owners for funding public schools. He urged local government to stand up against special interests to keep taxes from going up, even if valuations increase.

 

Here is the senator’s column

 

Even though we have just completed the 2025 Legislative Session, we have already started to prepare for the upcoming session. I have several bills that will carry over to the next legislative session, including:

 

  • LR13CA—Proposed Constitutional Amendment to prohibit the levying of an inheritance tax
  • LB 79--Provide for dismissal of certain civil actions involving commercial motor vehicles
  • LB 455--Provide for confidentiality of certain injury reports under the Nebraska Workers' Compensation Act
  • LB 575—Require increases in property valuations to be offset by a corresponding decrease in tax levies. Increased levies would require a supermajority vote of the local board

 

PROPERTY VALUATIONS

One of the most pressing issues I hear the most about is the issue of rising property taxes. Most Nebraskans by now have likely received notice of valuation changes. Please note that higher valuations do not automatically result in increased property taxes.

Property taxes are calculated by multiplying valuations by the tax levies set by local governmental entities. These entities determine their levies within limits set by the Legislature. Community colleges no longer levy property taxes for general operations.

Public schools are primarily funded by local property taxes and state aid. The TEEOSA formula for state aid has not been adjusted, causing property owners to bear an increasing share of education costs. I and other senators have proposed and will continue to propose legislation to address this.

Property tax levels are determined by elected officials' decisions, and those elected officials must have the political will to stand with taxpayers over the wants of special interests. I remain committed to ensuring the state contributes its fair share to K-12 education and eliminating unfunded mandates imposed upon local political subdivisions.

I welcome your input on issues of interest and importance to you. I encourage you to follow along on my Facebook page designated as Senator Bob Hallstrom, for updates on legislation and District 1 activities. Please feel free to contact me directly at Senator Bob Hallstrom, District 1 State Capitol, PO Box 94604, Lincoln, NE 68509; Telephone (402)471-2733; or email me at [email protected].