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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1183
Introduced by Lippincott, 34; Lonowski, 33.
Read first time January 21, 2026
Committee: Revenue
A BILL FOR AN ACT relating to revenue and taxation; to amend section1
79-1016, Reissue Revised Statutes of Nebraska, and sections 77-2012
and 77-5023, Revised Statutes Cumulative Supplement, 2024; to change3
provisions relating to valuation of property; to harmonize4
provisions; to provide an operative date; and to repeal the original5
sections. 6
Be it enacted by the people of the State of Nebraska,7
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Section 1. Section 77-201, Revised Statutes Cumulative Supplement,1
2024, is amended to read: 2
77-201 (1) Except as provided in subsections (2) through (4) of this3
section, all real property in this state, not expressly exempt therefrom,4
shall be subject to taxation and shall be valued at fifty percent of its5
actual value. 6
(2) Agricultural land and horticultural land as defined in section7
77-1359 shall constitute a separate and distinct class of property for8
purposes of property taxation, shall be subject to taxation, unless9
expressly exempt from taxation, and shall be valued at thirty-seven and10
five-tenths seventy-five percent of its actual value, except that for11
school district taxes levied to pay the principal and interest on bonds12
that are approved by a vote of the people on or after January 1, 202713
2022, such land shall be valued at twenty-five fifty percent of its14
actual value. 15
(3) Agricultural land and horticultural land actively devoted to16
agricultural or horticultural purposes which has value for purposes other17
than agricultural or horticultural uses and which meets the18
qualifications for special valuation under section 77-1344 shall19
constitute a separate and distinct class of property for purposes of20
property taxation, shall be subject to taxation, and shall be valued for21
taxation at thirty-seven and five-tenths seventy-five percent of its22
special valuation as defined in section 77-1343, except that for school23
district taxes levied to pay the principal and interest on bonds that are24
approved by a vote of the people on or after January 1, 2027 2022, such25
land shall be valued at twenty-five fifty percent of its special26
valuation as defined in section 77-1343. 27
(4) Historically significant real property which meets the28
qualifications for historic rehabilitation valuation under sections29
77-1385 to 77-1394 shall be valued for taxation as provided in such30
sections. 31
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(5) Tangible personal property, not including motor vehicles,1
trailers, and semitrailers registered for operation on the highways of2
this state, shall constitute a separate and distinct class of property3
for purposes of property taxation, shall be subject to taxation, unless4
expressly exempt from taxation, and shall be valued at its net book5
value. Tangible personal property transferred as a gift or devise or as6
part of a transaction which is not a purchase shall be subject to7
taxation based upon the date the property was acquired by the previous8
owner and at the previous owner's Nebraska adjusted basis. Tangible9
personal property acquired as replacement property for converted property10
shall be subject to taxation based upon the date the converted property11
was acquired and at the Nebraska adjusted basis of the converted property12
unless insurance proceeds are payable by reason of the conversion. For13
purposes of this subsection, (a) converted property means tangible14
personal property which is compulsorily or involuntarily converted as a15
result of its destruction in whole or in part, theft, seizure,16
requisition, or condemnation, or the threat or imminence thereof, and no17
gain or loss is recognized for federal or state income tax purposes by18
the holder of the property as a result of the conversion and (b)19
replacement property means tangible personal property acquired within two20
years after the close of the calendar year in which tangible personal21
property was converted and which is, except for date of construction or22
manufacture, substantially the same as the converted property.23
Sec. 2. Section 77-5023, Revised Statutes Cumulative Supplement,24
2024, is amended to read: 25
77-5023 (1) Pursuant to section 77-5022, the commission shall have26
the power to increase or decrease the value of a class or subclass of27
real property in any county or taxing authority or of real property28
valued by the state so that all classes or subclasses of real property in29
all counties fall within an acceptable range. 30
(2) An acceptable range is the percentage of variation from a31
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standard for valuation as measured by an established indicator of central1
tendency of assessment. Acceptable ranges are: (a) For agricultural land2
and horticultural land as defined in section 77-1359, thirty-four and3
five-tenths sixty-nine to thirty-seven and five-tenths seventy-five4
percent of actual value, except that for school district taxes levied to5
pay the principal and interest on bonds that are approved by a vote of6
the people on or after January 1, 2027 2022, the acceptable range is7
twenty-two forty-four to twenty-five fifty percent of actual value; (b)8
for lands receiving special valuation, thirty-four and five-tenths sixty-9
nine to thirty-seven and five-tenths seventy-five percent of special10
valuation as defined in section 77-1343, except that for school district11
taxes levied to pay the principal and interest on bonds that are approved12
by a vote of the people on or after January 1, 2027 2022, the acceptable13
range is twenty-two forty-four to twenty-five fifty percent of special14
valuation as defined in section 77-1343; and (c) for all other real15
property, forty-six ninety-two to fifty one hundred percent of actual16
value. 17
(3) Any increase or decrease shall cause the level of value18
determined by the commission to be at the midpoint of the applicable19
acceptable range. 20
(4) Any decrease or increase to a subclass of property shall also21
cause the level of value determined by the commission for the class from22
which the subclass is drawn to be within the applicable acceptable range.23
(5) Whether or not the level of value determined by the commission24
falls within an acceptable range or at the midpoint of an acceptable25
range may be determined to a reasonable degree of certainty relying upon26
generally accepted mass appraisal techniques. 27
Sec. 3. Section 79-1016, Reissue Revised Statutes of Nebraska, is28
amended to read: 29
79-1016 (1) On or before August 20, the county assessor shall30
certify to the Property Tax Administrator the total taxable value by31
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school district in the county for the current assessment year on forms1
prescribed by the Tax Commissioner. The county assessor may amend the2
filing for changes made to the taxable valuation of the school district3
in the county if corrections or errors on the original certification are4
discovered. Amendments shall be certified to the Property Tax5
Administrator on or before August 31. 6
(2) On or before October 10, the Property Tax Administrator shall7
compute and certify to the State Department of Education the adjusted8
valuation for the current assessment year for each class of property in9
each school district and each local system. The adjusted valuation of10
property for each school district and each local system, for purposes of11
determining state aid pursuant to the Tax Equity and Educational12
Opportunities Support Act, shall reflect as nearly as possible state aid13
value as defined in subsection (3) of this section. The Property Tax14
Administrator shall notify each school district and each local system of15
its adjusted valuation for the current assessment year by class of16
property on or before October 10. Establishment of the adjusted valuation17
shall be based on the taxable value certified by the county assessor for18
each school district in the county adjusted by the determination of the19
level of value for each school district from an analysis of the20
comprehensive assessment ratio study or other studies developed by the21
Property Tax Administrator, in compliance with professionally accepted22
mass appraisal techniques, as required by section 77-1327. The Tax23
Commissioner shall adopt and promulgate rules and regulations setting24
forth standards for the determination of level of value for state aid25
purposes. 26
(3) For purposes of this section, state aid value means:27
(a) For real property other than agricultural and horticultural28
land, forty-eight ninety-six percent of actual value;29
(b) For agricultural and horticultural land, thirty-six seventy-two30
percent of actual value as provided in sections 77-1359 to 77-1363. For31
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agricultural and horticultural land that receives special valuation1
pursuant to section 77-1344, thirty-six seventy-two percent of special2
valuation as defined in section 77-1343; and 3
(c) For personal property, the net book value as defined in section4
77-120. 5
(4) On or before November 10, any local system may file with the Tax6
Commissioner written objections to the adjusted valuations prepared by7
the Property Tax Administrator, stating the reasons why such adjusted8
valuations are not the valuations required by subsection (3) of this9
section. The Tax Commissioner shall fix a time for a hearing. Either10
party shall be permitted to introduce any evidence in reference thereto.11
On or before January 1, the Tax Commissioner shall enter a written order12
modifying or declining to modify, in whole or in part, the adjusted13
valuations and shall certify the order to the State Department of14
Education. Modification by the Tax Commissioner shall be based upon the15
evidence introduced at hearing and shall not be limited to the16
modification requested in the written objections or at hearing. A copy of17
the written order shall be mailed to the local system within seven days18
after the date of the order. The written order of the Tax Commissioner19
may be appealed within thirty days after the date of the order to the Tax20
Equalization and Review Commission in accordance with section 77-5013.21
(5) On or before November 10, any local system or county official22
may file with the Tax Commissioner a written request for a nonappealable23
correction of the adjusted valuation due to clerical error as defined in24
section 77-128 or, for agricultural and horticultural land, assessed25
value changes by reason of land qualified or disqualified for special use26
valuation pursuant to sections 77-1343 to 77-1347.01. On or before the27
following January 1, the Tax Commissioner shall approve or deny the28
request and, if approved, certify the corrected adjusted valuations29
resulting from such action to the State Department of Education.30
(6) On or before May 31 of the year following the certification of31
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adjusted valuation pursuant to subsection (2) of this section, any local1
system or county official may file with the Tax Commissioner a written2
request for a nonappealable correction of the adjusted valuation due to3
changes to the tax list that change the assessed value of taxable4
property. Upon the filing of the written request, the Tax Commissioner5
shall require the county assessor to recertify the taxable valuation by6
school district in the county on forms prescribed by the Tax7
Commissioner. The recertified valuation shall be the valuation that was8
certified on the tax list, pursuant to section 77-1613, increased or9
decreased by changes to the tax list that change the assessed value of10
taxable property in the school district in the county in the prior11
assessment year. On or before the following July 31, the Tax Commissioner12
shall approve or deny the request and, if approved, certify the corrected13
adjusted valuations resulting from such action to the State Department of14
Education. 15
(7) No injunction shall be granted restraining the distribution of16
state aid based upon the adjusted valuations pursuant to this section.17
(8) A school district whose state aid is to be calculated pursuant18
to subsection (5) of this section and whose state aid payment is19
postponed as a result of failure to calculate state aid pursuant to such20
subsection may apply to the state board for lump-sum payment of such21
postponed state aid. Such application may be for any amount up to one22
hundred percent of the postponed state aid. The state board may grant the23
entire amount applied for or any portion of such amount. The state board24
shall notify the Director of Administrative Services of the amount of25
funds to be paid in a lump sum and the reduced amount of the monthly26
payments. The Director of Administrative Services shall, at the time of27
the next state aid payment made pursuant to section 79-1022, draw a28
warrant for the lump-sum amount from appropriated funds and forward such29
warrant to the district. 30
Sec. 4. This act becomes operative on January 1, 2027.31
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Sec. 5. Original section 79-1016, Reissue Revised Statutes of1
Nebraska, and sections 77-201 and 77-5023, Revised Statutes Cumulative2
Supplement, 2024, are repealed. 3
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