A KETV investigation revealed that Gov. Jim Pillen and his businesses were eligible for more than $64,000 in tax credits unavailable to most Nebraskans because of a bill passed during the special session. It is unclear if Gov. Pillen applied for those credits. But the bill points out an inequity created by the passage of LB 34. As KETV Newswatch 7 previously reported, LB 34 creates a tale of two taxpayers based on “when” they paid their 2023 property taxes. As Pillen's property tax records show, if he paid his 2023 property tax bill before January 2024, he could have claimed the credit on his 2023 income tax return. But with LB 34, which lawmakers passed 40-3 and Pillen signed into law on Aug. 20, that credit, called the 1107 property tax credit, disappears and is no longer available on his 2024 income tax return. Sixty percent of property owners have a mortgage. So they pay monthly through an escrow account that pays their property taxes the following year. It's unclear how many of the remaining 40% pay their property taxes up front. So what happens to the 2023 1107 tax credit money? LB 34 would apply it directly to automatically reduce future property tax bills. State Sen. Lou Ann Linehan, chair of the state Assembly's Ways and Means Committee, said it would be a break-even for most taxpayers. “Your finances will remain the same. If local governments work together, both your property and income taxes will go down,” Linehan said earlier this week. But some people will get both an upfront tax cut and a tax credit. A KETV investigation looked at more than 50 properties owned by the Pillen family or his companies in eight counties. Pillen paid at least $446,000 on his 2023 property tax bill. With the exception of one, the property tax bills were paid in December 2023, meaning Pillen was eligible for credits totaling more than $64,000. A look at the payment history of Pillen's properties shows that traditionally some would have been paid up front and the rest the following year. But all but one of the 2023 bills were paid in full by 2024. KETV Investigates took these figures to the Governor's office to verify their accuracy and asked if Pillen claimed the credits, and if he did, is he willing to give them back? If not, all Nebraskans are eligible for the credits as well. No answer was given. Click here for the latest headlines from KETV NewsWatch 7
A KETV investigation has revealed that Gov. Jim Pillen and his businesses were eligible for more than $64,000 in tax credits unavailable to most Nebraskans thanks to legislation passed during the special session.
It's unclear whether Pillen claimed those deductions, but he points out the inequities created by the passage of LB 34.
As KETV Newswatch 7 previously reported, LB 34 creates a tale of two taxpayers based on when they paid their 2023 property taxes.
As Pillen's property tax records show, if he had paid his 2023 property taxes before January 2024, he would have been able to claim the deduction on his 2023 income tax return.
But LB 34, which lawmakers passed 40-3 and Governor Pillen signed into law on August 20, means that the credit, known as the 1107 property tax credit, will disappear on 2024 income tax returns and will no longer be available.
60% of property owners have a mortgage, so they make monthly payments through an escrow account that pays the next year's property taxes.
It's unclear how many of the remaining 40 percent pay their property taxes in advance.
So what happens to your 1107 tax credit money for 2023?
LB 34 would apply this directly, automatically reducing future property tax bills.
State Sen. Lou Ann Linehan, chairwoman of the state Legislature's Ways and Means Committee, said it wouldn't be a loss for most taxpayers.
“Your finances will remain the same, and if local governments work together, your taxes will go down, both your property taxes and your income taxes,” Linehan said earlier this week.
However, some people may be eligible for both an advance tax cut and a tax credit.
KETV Investigates looked at more than 50 properties owned by the Pillen family or their companies in eight counties.
Pillen paid at least $446,000 in 2023 property taxes.
In all but one case, the property tax bills were paid in December 2023, meaning Pillen was eligible for credits totaling more than $64,000.
A look at the payment history of Pillen's properties shows that traditionally some would be paid up front and the rest paid the following year, but in 2023 all but one were paid in full by 2024.
KETV investigative teams took those numbers to the governor's office to verify their accuracy and to ask if Pillen claimed the credit, and if he did, if he's willing to give it back, which could potentially mean relief for all Nebraskans.
I haven't received a reply.
For the latest headlines from KETV NewsWatch 7, click here
