Legislators took historic actions in the 2021 session by passing the biennium state budget providing Nebraskans with many benefits, including property tax relief.
Property owners in the state of Nebraska may have a little extra money in their bank account due to the passing of LB1107, which is set to bring around $430 million in property tax relief via a refundable income tax credit. Officials say that this new reduction, combined with increases in the property tax relief fund, as well as the homestead exemption, will give property owners almost 2 billion dollars in property tax relief over the next couple of years.
Weighing in at 18.5 percent of the current budget for the next two years, Nebraska Governor Pete Ricketts said the tax relief was possible because they have worked hard to control spending in the state and have adhered to 2.4% of the annual average growth.
Also included in the new bill is tax relief for veterans, Social Security recipients, businesses, agriculture, and ethanol. In fact, according to Governor Ricketts, this is the most substantial amount of tax relief that has been approved by a Nebraska Legislature in the history of the state.
Ricketts said that he is pleased with the tax relief delivered this year, but property tax bills have continued to rise, with an annual increase of around 4% over the past 10 years. The governor noted that there is still more work to be done in terms of property tax relief for Nebraskans and encouraged the Nebraska Legislature to pass a bill in the future to slow the growth of local jurisdiction property tax bills.
Other important policies listed in a news release from the governor’s office that may be of interest to agriculture producers and rural citizens include some of the following bills:
Expansion of efficient broadband to over 30,000 citizens in rural areas of the state, allowing them to work from home, shop online, have telehealth medical appointments, do homework, and more.
A new requirement that local taxpayers be notified when local governments are planning to raise their property tax bills by more than 2%
Reduction of taxes on Social Security income for Nebraskans
A bill that will make an easier process for hospitals and healthcare facilities to have adequate staffing at all times by providing an expedited process for reciprocity for many licensed health care professionals.
The full funding of the state school aid formula, which provides over $1 billion each year to K-12 Nebraska public schools.
Governor Ricketts encouraged the Legislature to discuss property tax relief as a main topic in their future meetings in the fall, when they will also discuss passing a bill to hinder the growth of local jurisdiction property tax bills for residents, take up census data, and begin to work on redistricting for voting for the integrity of future Nebraska elections.
