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LEGISLATIVE BILL 749
Approved by the Governor April 14, 2026
Introduced by Sorrentino, 39.
A BILL FOR AN ACT relating to aid to municipalities; to amend section
77-27,139.03, Reissue Revised Statutes of Nebraska; to change provisions
relating to the calculation of tax levies for state aid purposes; and to
repeal the original section.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 77-27,139.03, Reissue Revised Statutes of Nebraska, is
amended to read:
77-27,139.03 (1) State aid provided to municipalities pursuant to sections
77-27,139.01 to 77-27,139.04 shall be calculated by determining the average
property tax levy for operational purposes other than for principal and
interest payments on the indebtedness of all incorporated municipalities. The
Department of Revenue shall use the prior year's Certificate of Taxes Levied
that was certified to the Property Tax Administrator pursuant to section
77-1613.01 The Auditor of Public Accounts shall provide to the Department of
Revenue a list of the bond and nonbond tax request amounts from the most recent
budgets filed by incorporated municipalities. The information shall be used to
calculate the bond and nonbond tax levies for aid purposes under this section.
The auditor shall provide the information to the department by February 1 each
year.
(2) Each municipality shall receive state aid from the Municipal
Equalization Fund equal to (a) the product of the average per capita property
tax of the appropriate population group multiplied by the current population of
the municipality minus (b) the product of the average property tax levy
multiplied by the certified valuation within the incorporated municipality,
except that a municipality shall not receive any aid under this section if the
calculation results in a negative number.
(3) If a municipal tax levy for operational purposes was less than the
average property tax levy in the immediately preceding fiscal year, the state
aid provided to such municipality shall be reduced by twenty percent for each
one-cent increment the levy was below the average property tax levy but the
reduction shall not exceed eighty percent.
(4) If the amount of money in the Municipal Equalization Fund is less than
the total amount of state aid for all municipalities as required by the
allocation formula in subsection (2) of this section, the money in the fund
shall be allocated on a prorated basis to such municipalities. If the amount of
money in the fund is more than the total amount of state aid for municipalities
as required by the allocation formula, the excess money in the fund shall be
credited to the General Fund.
Sec. 2. Original section 77-27,139.03, Reissue Revised Statutes of
Nebraska, is repealed.
LB749
2026
LB749
2026
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