Nebraska lawmakers are considering a sweeping bill that promises “community development” but delivers boutique tax credits, new compliance burdens, hidden fees, and targeted carveouts. The amended version of LB650 doesn’t reform the tax code, it muddies it, making it more complicated, more expensive, and less competitive for working families and small businesses.
Governor Jim Pillen has wisely said he wants to lower Nebraska’s nation-leading property taxes and make the state more attractive to job creators. But LB650 reflects a different philosophy: one willing to raise taxes on broadband, hit businesses with new fees, and reshuffle who pays, not how much. This trade isn’t good tax reform—it’s just bad policy.
Wireless and Broadband: More Expensive, Less Accessible
One section of LB650 would reinstate sales tax on wireless tower leases, reversing a narrowly tailored exemption passed in 2021 that aligned Nebraska with common-sense tax treatment seen in most states. This change would raise costs for deploying wireless broadband, especially in rural areas where towers are essential for coverage.
Nebraska already ranks fifth highest in the nation for wireless taxes and fees, with residents paying over 33% in combined charges—more than California or New York. At a time when rural connectivity is critical, this bill makes it more costly for providers to invest and more expensive for Nebraskans to stay connected.
Carveouts and Credits That Shift Burdens
The bill’s centerpiece is a 40% income tax credit for donations to state-approved community programs. But instead of lowering rates for everyone, it picks winners and shifts the burden to others.
We respect generosity. But when the government starts subsidizing specific types of giving, it turns philanthropy into politics. Families not linked to these nonprofits still foot the bill for core services. This isn’t reform. It’s favoritism.
Hidden Fees on Homeowners
This bill also piles on new charges: a $150 administrative fee for lien certificates, costs for publishing tax sale notices, and more. These hit Nebraskans struggling with delinquent taxes the hardest. Paperwork becomes punishment.
Fees like these are regressive taxes in disguise. If the goal is to protect homeowners, this approach misses the mark.
More Confusion, Less Clarity
The bill creates a more fragmented tax system, layering on procedural mandates and exemptions without a coherent strategy. Local governments face new hoops to jump through. Taxpayers face more red tape and less transparency.
If fairness and simplicity are the goal, LB650 takes Nebraska in the opposite direction.
The Bottom Line: Higher Costs, Heavier Burdens, No Real Reform
From taxing broadband to subsidizing select nonprofits, from layering in fees to blurring the lines on property taxes, LB650 breaks faith with Governor Pillen’s own stated goals. It doesn’t simplify the system or lower burdens. It complicates it, and passes the cost to the very Nebraskans it’s supposed to help.
If state leaders are serious about lowering taxes and boosting Nebraska’s competitiveness, this isn’t the way. Lawmakers should reject LB650 and refocus on meaningful, broad-based reform.