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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1113
Introduced by Urban Affairs Committee: McKinney, 11, Chairperson;
Cavanaugh, J., 9; Quick, 35; Rountree, 3.
Read first time January 16, 2026
Committee: Urban Affairs
A BILL FOR AN ACT relating to the Community Development Law; to amend1
section 18-2147, Revised Statutes Supplement, 2025; to change2
provisions relating to notices for dividing ad valorem taxes; and to3
repeal the original section. 4
Be it enacted by the people of the State of Nebraska,5
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Section 1. Section 18-2147, Revised Statutes Supplement, 2025, is1
amended to read: 2
18-2147 (1) Any redevelopment plan as originally approved or as3
later modified pursuant to section 18-2117 may contain a provision that4
any ad valorem tax levied upon real property, or any portion thereof, in5
a redevelopment project for the benefit of any public body shall be6
divided, for the applicable period described in subsection (4) of this7
section, as follows: 8
(a) That portion of the ad valorem tax which is produced by the levy9
at the rate fixed each year by or for each such public body upon the10
redevelopment project valuation shall be paid into the funds of each such11
public body in the same proportion as are all other taxes collected by or12
for the body. When there is not a redevelopment project valuation on a13
parcel or parcels, the county assessor shall determine the redevelopment14
project valuation based upon the fair market valuation of the parcel or15
parcels as of January 1 of the year prior to the year that the ad valorem16
taxes are to be divided. The county assessor shall provide written notice17
of the redevelopment project valuation to the authority as defined in18
section 18-2103 and the owner. The authority or owner may protest the19
valuation to the county board of equalization within thirty days after20
the date of the valuation notice. All provisions of section 77-150221
except dates for filing of a protest, the period for hearing protests,22
and the date for mailing notice of the county board of equalization's23
decision are applicable to any protest filed pursuant to this section.24
The county board of equalization shall decide any protest filed pursuant25
to this section within thirty days after the filing of the protest. The26
county clerk shall mail a copy of the decision made by the county board27
of equalization on protests pursuant to this section to the authority or28
owner within seven days after the board's decision. Any decision of the29
county board of equalization may be appealed to the Tax Equalization and30
Review Commission, in accordance with section 77-5013, within thirty days31
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after the date of the decision; 1
(b) That portion of the ad valorem tax on real property, as provided2
in the redevelopment contract, bond resolution, or redevelopment plan, as3
applicable, in the redevelopment project in excess of such amount, if4
any, shall be allocated to and, when collected, paid into a special fund5
of the authority to be used solely to pay the principal of, the interest6
on, and any premiums due in connection with the bonds of, loans, notes,7
or advances of money to, or indebtedness incurred by, whether funded,8
refunded, assumed, or otherwise, such authority for financing or9
refinancing, in whole or in part, the redevelopment project. When such10
bonds, loans, notes, advances of money, or indebtedness, including11
interest and premiums due, have been paid, the authority shall so notify12
the county assessor and county treasurer and all ad valorem taxes upon13
taxable real property in such a redevelopment project shall be paid into14
the funds of the respective public bodies. An authority may use a single15
fund for purposes of this subdivision for all redevelopment projects or16
may use a separate fund for each redevelopment project; and17
(c) Any interest and penalties due for delinquent taxes shall be18
paid into the funds of each public body in the same proportion as are all19
other taxes collected by or for the public body. 20
(2) To the extent that a redevelopment plan authorizes the division21
of ad valorem taxes levied upon only a portion of the real property22
included in such redevelopment plan, any improvements funded by such23
division of taxes shall be related to the redevelopment plan that24
authorized such division of taxes. 25
(3)(a) For any redevelopment plan located in a city of the26
metropolitan class that includes a division of taxes, as provided in this27
section, that produces, in whole or in part, funds to be used directly or28
indirectly for (i) new construction, rehabilitation, or acquisition of29
housing for households with annual incomes below the area median income30
for households and located within six hundred yards of a public passenger31
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streetcar or (ii) new construction, rehabilitation, or acquisition of1
single-family housing or condominium housing used as primary residences2
for individuals with annual incomes below the area median income for3
individuals, such housing shall be deemed related to the redevelopment4
plan that authorized such division of taxes regardless of whether such5
housing is or will be located on real property within such redevelopment6
plan, as long as such housing supports activities occurring on or7
identified in such redevelopment plan. 8
(b) During each fiscal year in which the funds described in9
subdivision (a) of this subsection are available, the authority and city10
shall make best efforts to allocate not less than thirty percent of such11
funds to single-family housing deemed related to the redevelopment plan12
described under such subdivision. 13
(c) In selecting projects to receive funding, the authority and city14
shall develop a qualified allocation plan and give first priority to15
financially viable projects that serve the lowest income occupants for16
the longest period of time. 17
(4)(a) For any redevelopment plan for which more than fifty percent18
of the property in the redevelopment project area has been declared an19
extremely blighted area in accordance with section 18-2101.02, ad valorem20
taxes shall be divided for a period not to exceed twenty years after the21
effective date as identified in the project redevelopment contract or in22
the resolution of the authority authorizing the issuance of bonds23
pursuant to section 18-2124. 24
(b) For all other redevelopment plans, ad valorem taxes shall be25
divided for a period not to exceed fifteen years after the effective date26
as identified in the project redevelopment contract, in the resolution of27
the authority authorizing the issuance of bonds pursuant to section28
18-2124, or in the redevelopment plan, whichever is applicable.29
(5) The effective date of a provision dividing ad valorem taxes as30
provided in subsection (4) of this section shall not occur until such31
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time as the real property in the redevelopment project is within the1
corporate boundaries of the city. This subsection shall not apply to a2
redevelopment project involving a formerly used defense site as3
authorized in section 18-2123.01. 4
(6) All notices of the provision for dividing ad valorem taxes shall5
be sent by the authority to the county assessor on forms prescribed by6
the Property Tax Administrator. The notice shall be sent to the county7
assessor on or before July 2 1 of the year of the effective date of the8
provision. Failure to satisfy the notice requirement of this section9
shall result in the taxes, for all taxable years affected by the failure10
to give notice of the effective date of the provision, remaining11
undivided and being paid into the funds for each public body receiving12
property taxes generated by the property in the redevelopment project.13
However, the redevelopment project valuation for the remaining division14
of ad valorem taxes in accordance with subdivisions (1)(a) and (b) of15
this section shall be the last certified valuation for the taxable year16
prior to the effective date of the provision to divide the taxes for the17
remaining portion of the twenty-year or fifteen-year period pursuant to18
subsection (4) of this section. 19
Sec. 2. Original section 18-2147, Revised Statutes Supplement,20
2025, is repealed. 21
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