Senator Brandt Discusses Valuations And Property Taxes

By Gordon Hopkins“Of all the issues in my seven years, there’s only one, and that’s property tax.”That came from Nebraska Senator Tom Brandt, who spoke with Jefferson County Commissioners on a variety of subjects, including property taxes and valuations, during a meeting the morning of Tuesday, June 3, 2025.Brandt said, “We can get distracted on all these cultural issues, all the stuff that makes headlines, and granted, everyone has an opinion about that, but at the end of the day, I can tell you from where I sit, it’s just property taxes.” ValuationsThis month, Nebraskans began receiving property valuations in the mail. Brandt told commissioners, “I’ve gotten three or four phone calls so far already, particularly from Lancaster.”According to the Nebraska Department of Revenue, Property Assessment Division, the total increase for agricultural land was 42.28 percent. That was the single largest increase for agricultural land in any Nebraska county. The increase in Gage County for agricultural land was 25.47 percent and for Jefferson County, the increase was 13.03 percent, 9.96 percent for Saline County and just 3.9 percent for Thayer County. How Valuations Impact TaxesIt is a misconception many people hold that, if valuations increases, taxes increase by an equivalent amount.Every year, the county must set a budget. That is the county’s revenue requirement. The county must then apply a levy against that valuation, which gives the county the revenue needed to pay for the budget. That is how the county is funded. Valuations and Market ValueIn Nebraska, property valuations are set in accordance with state statutes and based on market value. Senator Brandt believes that needs to change, “It’s time for Nebraska to look at using a cap rate on valuations, changing our Constitution so we aren’t using a sales-based approach to valuation. It’s the only way you’re going to fix valuation in this state. On the ag side, it seems to be working quite well for both Iowa and Kansas. The alternative is called a capitalization rate. We’re a border county (Kansas), and their ag land owners pay about a third of what Nebraska does, and I think you see that particularly in that Steele City area. But their state does fund more of their schools, and Nebraska needs to do more of that.”Commissioner Mark Schoenrock asked, “What’s the alternative, if you don’t use the sales based valuation?”“It’s called a capitalization rate. So, in Kansas for example, K State University is tasked every year with finding what the profitability of ag land is. And so they take the value of corn, wheat, beans, cattle and hogs, factor it in there,” responded Brandt. “Their ag land owners pay about 1/3 of what Nebraska does.” Funding SchoolsThe Nebraska Tax Equity and Educational Opportunities Support Act (TEEOSA) is the formula determines how state aid is distributed to school districts. A bill recently passed by the legislature will create a School Financing Review Commission.Senator Brandt noted, “That pretty much got gutted, except for the commission, which it’s governor’s making a bigger deal out of that than what it really is. So, that will establish a commission to review the TEEOSA formula on an annual basis to see what levers we need to pull on that.”Also in attendance at that meeting was Nebraska Association of County Officials (NACO) Executive Director Jon Cannon, who said, “At the end of the day, 60 percent of the property tax comes from the schools. Senator Brandt hits it right on the head. You know, if we’re serious about property taxes in the state, we’re going to find a way of funding the schools in a way that satisfies everyone.”“I understand the need to talk about valuation,” said Cannon. “It’s a factor, but it’s not the driver. The driver has always been what we have spent, the cost of government.”One of the major concerns educators have when considering increasing state funding is the potential for losing local control. Cannon acknowledged that concern, “Whoever has the gold makes the rules.” Property Tax ReliefAnother bill under consideration by the legislature, but failed to pass, was LB170, which would have eliminated certain sales tax exemptions..Senator Brandt said, “That would have generated another $100 million in property tax relief. Unfortunately there were seven freshmen Republican senators that were against it, so we came two votes short. By and large, it wouldn’t have cost most Nebraskans anything, unless you chartered jets, or rented limousines, or swimming pool cleaners, pop and candy tax was in there. We took all that out, just raised tax on tobacco and vaping. And, if you didn’t smoke, that would have generated $75 to $80 million, and still we couldn’t get this thing across the line.” Property Tax CreditLast year, the Nebraska Legislature passed LB (Legislative Bill) 34, which front loads a 30 percent property tax credit that goes to the schools, rather than requiring taxpayers to claim it as a credit on their state income tax return.“When I talk to constituents, they understand the property tax that they’re getting money back. People that have homes are just delighted,” said Brandt. “When you look at what we had on the tier two, the refundable state income tax credits, virtually all ag land owners in the state were claiming that. A lot of the people that had houses did not for a wide variety of reasons.”However, as a result of the wording of the bill, there is a “gap year,” where taxpayers will not be able to claim the tax credit. Brandt said, “But the problem is that we skipped that year in there, that gap year, and I just had a conversation with landowner in Saline County this morning and she’s quite upset. And, so, she lost $16,000 because of the gap year.” What Happens NextWhile the legislative session has ended, that does not mean senators are finished. Senator Brandt said, “Start about July 4, we start getting together on stuff again, and interim studies, working on projects, interim hearings, and we start wrapping up for next year. But next year is a short session.”

A Great Day Outdoors

Kill Two Stones With One Bird

Related Articles

High Winds Fuel Multiple Wild Fires in SE Nebraska

Sen. Ricketts Makes the Case for War

City Offices Closed During Move

A Broken Wire Over Railroad Tracks Leaves City in the Dark