LB 152 creates a homestead exemption in Nebraska, effective January 1, 2026, that exempts the first $100,000 of a primary residence's actual value from property taxes. It directly affects Nebraska homeowners who occupy their property as their primary residence, as defined by the bill. Key provisions include setting the exemption amount, allowing transfers of the exemption when moving to a new homestead, and requiring state reimbursement for the tax loss. The bill harmonizes existing homestead exemption rules and amends multiple tax statutes to implement this change.
LB 484 redefines "agricultural land" and "horticultural land" for property tax purposes in Nebraska, ensuring these lands are taxed differently than other property. The bill adds specific definitions: land used for commercial crop/livestock production (excluding solar/wind farms) qualifies, while land in conservation programs or enrolled in federal production-reduction programs still counts if primarily used for farming. This directly affects farmers and landowners with qualifying agricultural property, as it clarifies how their land's assessed value is calculated relative to other property classes. The key mechanism is excluding non-farming commercial uses (like energy projects) from the agricultural classification to maintain lower tax rates for active farms.
This bill modifies how Nebraska handles state aid to local governments (cities, counties, and other political subdivisions) that miss financial deadlines. If a local government fails to comply with budget limits, submit property tax calculations, or complete annual audits, the state will suspend their funding for six months. If compliance isn't achieved within that period, the funds are forfeited and redistributed to other local entities in the same county or returned to state funds. After 12 months of non-compliance, the local government becomes ineligible for future state aid until it meets all requirements.
This bill modifies Nebraska's Property Tax Growth Limitation Act and School District Property Tax Relief Act. It changes how municipalities and school districts calculate annual property tax limits by revising formulas for "allowable growth" (accounting for new construction, annexation, and inflation) and adjusting budget calculation methods. The bill also updates rules for municipal occupation taxes, property tax statements, and allows counties to retain certain funds for costs under the School District Property Tax Relief Act. These changes directly affect local governments, school districts, and county treasurers in managing property tax revenues. The bill amends specific statutes (13-518, 13-3403, etc.) but does not alter the underlying tax rates or revenue collection mechanisms.
This bill updates Nebraska's definitions for "disabled veteran" and "blind veteran" to align with federal standards under 5 U.S.C. 2108 (as of January 1, 2025). It changes eligibility for two existing tax exemptions: motor vehicle tax breaks (under section 60-3,185) and mobile home property tax exemptions (under section 77-202.24) for veterans whose disability or blindness is service-connected and recognized by the U.S. Department of Veterans Affairs. To qualify, veterans must now meet specific federal criteria, such as having lost the use of or undergone amputation of two or more limbs, or one limb plus loss of use in another. The changes take effect January 1, 2026, and repeal the previous definitions.
