Renters would get some relief, too, under a pair of legislative proposals

Nebraskans who lease their homes would get some financial relief under a couple of legislative proposals introduced Thursday during the special session. Shown here is Westline at Flanagan Lake Apartments , which was one of the larger housing complexes issued building permits in the City of Omaha in 2021. (Courtesy of Simonson & Associates Inc.)

LINCOLN — Nebraska renters would get some financial relief in the form of an income tax credit under a pair of proposals to be considered by the Legislature.

State Sens. Terrell McKinney of North Omaha and Eliot Bostar of Lincoln each introduced a bill Thursday seeking to compensate renters who otherwise would not automatically reap any direct benefit from property tax reforms being pushed by Gov. Jim Pillen.

McKinney said that while landlords would achieve property tax relief, it is not a given they would pass that relief on to their renters.

“It’s not fair,” he said. 

With about 60% of his constituents in rental homes, McKinney said, “we have to think about renters and how property tax and property tax relief affects them.”

McKinney’s Legislative Bill 20 calls for a refundable credit against income tax to renters of 4% of total annual rent, or $200, whichever is greater, not to exceed $1,000.

Under Bostar’s Legislative Bill 14, renters would get a credit of 5% of their lease expenses during the taxable year.

Bostar said relief to renters, especially in the short term, has been an ongoing conversation during the discussions about property tax reform.

Of his proposal, he said: “It’s a means of ensuring that renters as well as property owners could see relief this session,” if the Legislature indeed passes property tax reform.

Housing in Bostar’s legislative district is about 37% renter occupied, according to the Legislative Research Office.  

Consideration of renters also came up in in “listening sessions” hosted last weekend by several lawmakers in the urban centers of Omaha and Lincoln.

State Sen. Merv Riepe of Ralston told the Omaha audience that his district includes a lot of apartments (about 49% of homes are renter-occupied) and that “the belief” is that the owners would pass down property tax relief savings to tenants.

“And I say baha,” Riepe told the group. “I don’t believe that for a day.”

Of all Nebraska legislative districts, the highest percentage of renter-occupied homes is in the southeast and downtown Omaha District 7, represented by Sen. Tony Vargas, and the lowest percentage of rental units in Sarpy County’s District 36, represented by Sen. Rick Holdcroft.

U.S. Census data shows Nebraska has about 66% homeowners and about 34% renters.

The median rent in the state is about $1,360, according to Zillow rental market research, which looked at median rent for all property types and number of bedrooms.

Whether workers earning a median wage in Nebraska are seeking a house or an apartment, recent research by the Nebraska Legislative Research Office said they often are unable to find a home, especially in light of rising property values.

The researchers said that the median annual income of an owner-occupied household in Nebraska was more than $91,000, while renter households earned about $44,200.

The post Renters would get some relief, too, under a pair of legislative proposals appeared first on Nebraska Examiner.