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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 814
Introduced by Brandt, 32; DeKay, 40; Dorn, 30; Ibach, 44; Jacobson, 42;
Murman, 38.
Read first time January 07, 2026
Committee: Revenue
A BILL FOR AN ACT relating to revenue and taxation; to amend sections1
77-201 and 77-5023, Revised Statutes Cumulative Supplement, 2024; to2
change the valuation of agricultural land and horticultural land; to3
harmonize provisions; and to repeal the original sections.4
Be it enacted by the people of the State of Nebraska,5
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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 its actual value.5
(2) Agricultural land and horticultural land as defined in section6
77-1359 shall constitute a separate and distinct class of property for7
purposes of property taxation, shall be subject to taxation, unless8
expressly exempt from taxation, and shall be valued at:9
(a) Before January 1, 2027, seventy-five percent of its actual10
value, except that for school district taxes levied to pay the principal11
and interest on bonds that are approved by a vote of the people on or12
after January 1, 2022, such land shall be valued at fifty percent of its13
actual value; and . 14
(b) On or after January 1, 2027, fifty percent of its 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: 22
(a) Before January 1, 2027, seventy-five percent of its special23
valuation as defined in section 77-1343, except that for school district24
taxes levied to pay the principal and interest on bonds that are approved25
by a vote of the people on or after January 1, 2022, such land shall be26
valued at fifty percent of its special valuation as defined in section27
77-1343; and . 28
(b) On or after January 1, 2027, fifty percent of its special29
valuation as defined in section 77-1343. 30
(4) Historically significant real property which meets the31
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qualifications for historic rehabilitation valuation under sections1
77-1385 to 77-1394 shall be valued for taxation as provided in such2
sections. 3
(5) Tangible personal property, not including motor vehicles,4
trailers, and semitrailers registered for operation on the highways of5
this state, shall constitute a separate and distinct class of property6
for purposes of property taxation, shall be subject to taxation, unless7
expressly exempt from taxation, and shall be valued at its net book8
value. Tangible personal property transferred as a gift or devise or as9
part of a transaction which is not a purchase shall be subject to10
taxation based upon the date the property was acquired by the previous11
owner and at the previous owner's Nebraska adjusted basis. Tangible12
personal property acquired as replacement property for converted property13
shall be subject to taxation based upon the date the converted property14
was acquired and at the Nebraska adjusted basis of the converted property15
unless insurance proceeds are payable by reason of the conversion. For16
purposes of this subsection, (a) converted property means tangible17
personal property which is compulsorily or involuntarily converted as a18
result of its destruction in whole or in part, theft, seizure,19
requisition, or condemnation, or the threat or imminence thereof, and no20
gain or loss is recognized for federal or state income tax purposes by21
the holder of the property as a result of the conversion and (b)22
replacement property means tangible personal property acquired within two23
years after the close of the calendar year in which tangible personal24
property was converted and which is, except for date of construction or25
manufacture, substantially the same as the converted property.26
Sec. 2. Section 77-5023, Revised Statutes Cumulative Supplement,27
2024, is amended to read: 28
77-5023 (1) Pursuant to section 77-5022, the commission shall have29
the power to increase or decrease the value of a class or subclass of30
real property in any county or taxing authority or of real property31
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valued by the state so that all classes or subclasses of real property in1
all counties fall within an acceptable range. 2
(2) An acceptable range is the percentage of variation from a3
standard for valuation as measured by an established indicator of central4
tendency of assessment. Acceptable ranges are: 5
(a) For agricultural land and horticultural land as defined in6
section 77-1359: , 7
(i) Before January 1, 2027, sixty-nine to seventy-five percent of8
actual value, except that for school district taxes levied to pay the9
principal and interest on bonds that are approved by a vote of the people10
on or after January 1, 2022, the acceptable range is forty-four to fifty11
percent of actual value; and 12
(ii) On or after January 1, 2027, forty-four to fifty percent of13
actual value; 14
(b) For for lands receiving special valuation: ,15
(i) Before January 1, 2027, sixty-nine to seventy-five percent of16
special valuation as defined in section 77-1343, except that for school17
district taxes levied to pay the principal and interest on bonds that are18
approved by a vote of the people on or after January 1, 2022, the19
acceptable range is forty-four to fifty percent of special valuation as20
defined in section 77-1343; and 21
(ii) On or after January 1, 2027, forty-four to fifty percent of22
special valuation as defined in section 77-1343; 23
(c) For for all other real property, ninety-two to one hundred24
percent of actual value. 25
(3) Any increase or decrease shall cause the level of value26
determined by the commission to be at the midpoint of the applicable27
acceptable range. 28
(4) Any decrease or increase to a subclass of property shall also29
cause the level of value determined by the commission for the class from30
which the subclass is drawn to be within the applicable acceptable range.31
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(5) Whether or not the level of value determined by the commission1
falls within an acceptable range or at the midpoint of an acceptable2
range may be determined to a reasonable degree of certainty relying upon3
generally accepted mass appraisal techniques. 4
Sec. 3. Original sections 77-201 and 77-5023, Revised Statutes5
Cumulative Supplement, 2024, are repealed. 6
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