LINCOLN — Former state Sen. Lynne Walz is calling for universal homestead exemptions, an end to “price gouging,” a temporary gas tax holiday and an annual school-supply sales tax holiday if she’s elected this fall as Nebraska’s first Democratic governor in three decades.
The former lawmaker from Fremont released the final seven pages of what she’s termed “Lynne’s Commitment to Nebraskans” regarding her ideas to stabilize Nebraska’s budget, lower taxes and reinvigorate economic development. She previewed the first three pages July 22, which outlined some of her day-one commitments but did not yet detail specific action plans.
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Walz said her “commitment” is to stay focused on top concerns she’s heard, such as rising costs, valuations and property taxes, and to offer a change from Republican Gov. Jim Pillen.
“Our state is broke and Pillen can’t balance the budget. People feel our elected officials aren’t listening,” Walz said in a statement. “We have a lot of challenges ahead of us.”
Among her new ideas, Walz said she would implement a temporary two-week gas tax holiday after being elected and push for a “school-supply sales tax holiday” the first weekend of August. She is a former teacher and chaired the Legislature’s Education Committee for two years.
She would also seek to stop “price gouging,” such as on prescription drugs and groceries, and replicate President Donald Trump’s end of federal taxes on tips and overtime for state taxes.
Universal homestead exemption
Also included in the expanded platform are proposals to stop the “Pillen budget crisis”; fix a “broken tax system”; grow communities, businesses and agriculture; and restore “good governance.”
Walz said she will pursue “targeted” property tax relief for homeowners, businesses, farmers and ranchers instead of broad relief for out-of-state billionaires and large corporations who she said are buying up Nebraska’s housing supply and agricultural land.
One idea she has to do so is a universal homestead exemption on the first $100,000 of a property’s valuation. Property taxes are calculated as the property tax levy per $100 of a property’s value. A $1 levy on a $200,000 home would be $2,000 in taxes, for instance, before any legislatively authorized reductions apply.
“We will ensure that Nebraska residents who need relief the most will feel it,” Walz wrote.
A homestead exemption can be applied to someone’s primary home and is applicable for senior citizens, individuals with disabilities and disabled veterans to reduce all or part of their valuation for tax purposes.
State Sen. John Cavanaugh of Omaha, a Democrat, has sponsored the universal exemption idea before, which has failed to gain traction.
Walz is also calling to cap annual property tax valuation increases for all property that doesn’t have major renovations or new construction.
Pillen in July said he supports a firm annual cap on valuation hikes and local spending bumps.
Neither Pillen nor Walz has yet decided what exact valuation cap they would like. Pillen said he’s open to a constitutional amendment, which voters could weigh in on as soon as 2028. Walz’s campaign also noted another idea that floated around in 2024, but failed to pass, to give the Legislature the authority to differently value owner-occupied homes and other property types.
Income, sales and other taxes
To help fund property tax relief, the governor has said he will continue seeking legislative repeal of various sales tax exemptions and apply a 5.5% sales tax on certain goods and most services. Such bills have narrowly stalled multiple times in his tenure.
Walz, meanwhile, has repeatedly said growing the economy through a renewed focus on economic development is the way to go. She is planning to hire an independent auditor, too, to assist State Auditor Mike Foley in identifying possible waste, fraud and abuse.
She has also pledged to get a functioning medical cannabis program underway faster than Pillen, and by suggesting the medicine as a possible revenue source, her campaign has indicated she may pursue taxation. The medicine, though not yet legal to purchase in Nebraska, is currently tax free. However, her platform also says she would oppose any sales tax efforts that increase consumer costs and stop “any efforts” to add taxes on food, water, medicine or other essential products.
In addition, the platform calls for a “fair income tax structure” and states that working-class Nebraskans should not pay more in taxes than the highest earners.
“We need to close loopholes and adjust rates that allow our businesses to remain competitive while also keeping more money in your pockets,” Walz’s platform reads.
Asked whether Walz wants to change income tax rates further, such as raising or lowering rates or pursuing more tax brackets, her campaign did not say. She voted for 2023 legislation that, as of next year, will bring top individual and corporate income tax rates to 3.99%.
Among other ideas in Walz’s expanded platform are to:
- Evaluate the effectiveness of tax incentives.
- Invest in mental health services and job training to reduce homelessness and prevent crime.
- Boost early interventions for young readers.
- Restrict “no-bid contracts” to cases of only “declared emergencies.”
- Improve preparedness and response plans for foreign animal diseases.
- Create a statewide strategy to track and monitor new developments of data centers.
- Enact a code of ethics for all elected and high-level government officials.
A possible fourth candidate?
In addition to Pillen and Walz, the pair face Legal Marijuana NOW’s Rick Beard of Omaha, who proposes a state-run medical cannabis program to expedite access as voters demanded in 2024.
They could also face a fourth candidate. Former state Sen. Brett Lindstrom of Omaha, an ex-Republican, failed to qualify a nonpartisan petition campaign for governor, in part due to allegations of fraudulent signatures. He’s opened the door to running as the gubernatorial candidate for an existing or prospective third party and join what he terms a “pirate ship.”
The deadline for the Libertarians and prospective America First Party or Nebraska Working People Party to nominate a gubernatorial candidate is Sept. 1.
‘Light on the details’
Taylor Sliva, Pillen’s campaign manager, pushed back on Walz’s expanded platform. He described her values as “too liberal for the vast majority of Nebraskans” and said her administration would mean increased government spending, risks to legislative protections for girls’ and women’s sports and more tax giveaways to “Big Tech data centers.”
“Lynne Walz is light on the details — once again,” Sliva said in a statement. “In the Legislature she had eight years to bring forward solutions and failed.”
Pillen’s campaign said Walz’s platform also includes a “total falsehood” because Pillen, alongside the Legislature, met his constitutional duty to balance the budget each cycle.
Walz and her campaign have said they don’t have as many resources as Pillen does. Walz told Nebraskans the commitment is “an overarching plan that will continue to evolve as we learn the full scope of the budget crisis and hear your feedback, your ideas and your concerns.”
She continued: “Our goals here are clear: we will work to reduce the cost of living, ensure families are safe and have opportunities to succeed and prioritize economic development.”
The general election is Nov. 3.
This story is provided by States Newsroom, a nonprofit state news network and Blox Digital content partner.
