Legislature To Look At Property Valuations

By Gordon HopkinsIn June, Nebraskans began receiving property valuations in the mail. Many homeowners saw a significant increase in valuation, with some more than double, leading to a public uproar. As a result, some of the bills introduced at the special session of the Nebraska legislature deal with property valuations.Currently, property valuations are set in accordance with state statutes and based on market value.In Jefferson County, the increase in valuations led to a drastic uptick in property protests for this year. The County Assessor’s Office reported 271 protests were filed. For comparison, 25 protests were filed in 2023 and 52 in 2022.LB33Introduced by Senator Tom Brandt (R-District 32), LB (Legislative Bill) 33 would increase refundable income tax credits.According to the Statement of Intent, “LB33 would increase the amount appropriated to the Nebraska Property Tax Incentive Act (Tier II) by $300 million for calendar year 2024, and another $300 million for calendar year 2025.”LB27LB27, sponsored by Senator Carol Blood (D-District 3), would provide refundable income tax credits to offset the cost of property taxes for homeowners or renters with an adjusted gross income under $100,000 for married couples and under $50,000 for single filers. The bill would also offer credits to farm and ranch land owners whose farming operations bring in less than $350,000 a year.LB34Sponsored by Senator Tom Brewer (R-District 3), LB34 would change the method of assessment of real property and establish a four-year moratorium on property valuation increases.According to the Fiscal Note published also with the bill, “LB 34 is similar to LB 576 AM 399 which was proposed in 2017. The current bill, LB 34, provides that a real property owner’s real property tax bill for 2025 through 2028 shall equal the owner’s real property tax bill for 2024 plus any improvements made within the year and minus any improvement that have been destroyed or removed.”LR24CALR (Legislative Resolution) 24CA, introduced by Senator Mike McDonnell (R-District 5), is a constitutional amendment authorizing the Legislature to provide a different method of taxing residential real property. According to the Statement of Intent, “LR24CA would provide that residential property may constitute a separate and distinct class of property for purposes of taxation and may provide for a different method of taxation, including one that limits the growth of valuations.”LB72A companion piece to LR 24CA, if enacted, would limit this increase to five percent.LB75McDonnell also introduced LB 75, which would exempt all property taxes after 40 years of owning a home in the state.LB77Another McDonnell bill would exempt homeowners from school taxes after 10 years in the same home.LR2CAA constitutional amendment introduced by Senator Brandt that would allow owner-occupied housing to be assessed at a special valuation.LR6CASenator Kathleen Kauth (R-District 31), proposed a constitutional amendment, modeled after Proposition 13, which passed in 1978 in California.LR6CA would, per the Statement of Intent, “limit increases the valuation of real property, impose accountability on political subdivisions utilizing bonded indebtedness and define terms.”These are just a few of several proposals that could impact property valuations.

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