LINCOLN, Neb. (KMTV) — When homeowners pay their property taxes each year, their eligible receive an income tax credit. But for some, that credit never came due to legislation. Now, senators said they’re trying to right this wrong in the 2025 session.
For over 30 years, Melinda Classen has lived in her west Omaha home. Like many homeowners, she's dealt with property taxes, saying they're just too high.
"Property taxes have really escalated year after year after year," said Classen.
To help with property tax relief, a property tax bill introduced this summer allowed homeowners to automatically receive a tax credit on their statement instead of having to claim the credit each year.
But senators say there was a mistake because the bill missed a year and eliminated a credit for 2023. About 85% of homeowners are missing an income tax credit for 2023.
"We ended up making life more miserable for the 85% of people who did not pay their property taxes in 2023 for 2023," said Sen. Brian Hardin.
The senators said there's about three-quarters of a billion dollars that needs to be paid to taxpayers who didn't receive a credit.
SOT Sen. Tom Brandt // District 32
"When I talked with my constituents, this is the number one thing this year. They want to know what happened," said Sen. Tom Brandt.
Kent Urban is a CPA with Tax Help - O'Malley Financial Services.
"Ultimately, it takes money to give credit. Ultimately, it's up to the legislature to figure that out and how they're going to go about doing that," said Urban.
The senators introduced a bill Thursday to start the process of getting Nebraskans their money. They said it will take a couple of weeks or months to potentially see change.
"What our repair bill does is say, 'Let's acknowledge it. Let's have a conversation about fixing it,'' said Hardin.
For people who are affected, there will be an opportunity down the road for public comment. But for now, they say to contact your senator.
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