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Since the 1966 petition initiation, the government has been bared from assessing property taxes. Now, county assessors levy the value of property within their jurisdictions but are overseen by the Property Tax Administrator.
When compared to other states, property tax in Nebraska is a bit higher, but everyone pays the same rate according to tax district. For instance, everyone in District X pays 8%, regardless of income level. Real estate tax is based on the real or actual market value of the property and is assessed at 100% of its value.
Agricultural land, however, is assessed at 80% of its real value, and starting in 2007 that rate will drop another 5% to 75%, which is an initiative known as Nebraska’s “greenbelt provision” or “greenbelt tax reduction program.” This program is aimed towards farmers and ranchers who live near developed areas that continue to increase in value. Only commercial farms and ranches apply insofar as most of their land is used for agricultural purposes. (Livestock is exempt from property tax.)
Property tax does not apply if the property in question is:
- Government owned
- Used for public purposes
- Owned by a nonprofit organization
- Used for cemetery, educational, religious, or charitable reasons
- Eligible for Homestead Exemption. This includes individuals over age 65, certain disabled persons, and certain disabled veterans and their widow(er)s. To receive this benefit, a person must submit an Application or Certification of Status, Form 458 to the county assessor.
Thinking of property investment to start a business? Nebraska may be the place to go. The state’s Employment and Investment Growth Act (LB775), passed in 1987, provides tax credits—or in some cases, eliminates taxes altogether—to companies operating within the state. It has drawn in and retained more than 450 companies, employed more than 39,000 people, and added nearly $5.3 billion to Nebraska’s economy. To learn more, click here.
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