Nebraska2026Did Not Pass

LB1038

Changes to School Tax Limits and Gambling Taxes

Last scannedAug 25, 2026, 3:18 AM

In one sentence

This law lowers the maximum property tax school districts can collect starting in fiscal year 2026-27 and changes how taxes from gambling machines are shared between state funds, counties, and cities.

Lowers the maximum property tax levy for most school districts to fifty cents per one hundred dollars of taxable value beginning in fiscal year 2026-27.
Sets aside forty percent of taxes from cash devices (gambling machines) for a fund that helps pay future education costs and reduce property taxes.
Directs twenty-five percent of gambling machine tax revenue to the county or city where each device is located, depending on whether it sits in an unincorporated area or inside city limits.
Allocates portions of racetrack enclosure taxes to a fund for compulsive gamblers and other state education funds.
Exempts cash devices operated by licensed fraternal benefit societies and recognized veterans organizations from the new tax requirements.

The provided text is truncated and does not list all exceptions for school levies related to teacher termination payments.
Specific details on how much money will be raised or saved are not included in this excerpt.

Plain language

Levy limit: The maximum amount of property tax a school district is allowed to collect from each hundred dollars of property value.
Cash device: A gambling machine that accepts money and pays out winnings, such as those found in bars or restaurants.
Fiscal year 2026-27: The government budget period starting July 1, 2026, when the new lower tax limit takes effect.

Official record

Source attached

Change provisions relating to school funding and property taxes

Official activity