The State of Nebraska is providing property owners tax relief of a portion of real property taxes levied in 2024. This relief includes funds provided by the Property Tax Credit Act and the School District Property Tax Relief Act.
The Property Tax Credit Act provides a real property tax credit based upon the credit allocation valuation of each parcel of real property compared to the credit allocation valuation of all real property in the state.
For purposes of the Act, credit allocation valuation means 120% of the taxable value of agricultural and horticultural land and agricultural and horticultural land receiving special valuation. For all other real property, other than agricultural land, credit allocation valuation means 100% of the taxable value.
The total amount of credit available for statewide distribution in 2024 is $427,068,566. This amount includes $21,811,574 transferred into the Property Tax Credit Cash Fund from gaming income pursuant to Neb. Rev. Stat. §9-1204 as well as $7,256,992 of reappropriated unused credit funds and interest. The Department of Revenue’s methodology for 2024 has accelerated property tax relief to Nebraskans. This year’s gaming contribution of $21,811,574 includes gaming funds received from December 2022 through July 2024.
The Property Tax Credit Act requires allocation of the credit monies based on the credit allocation value; therefore, there are two rates of credit. One rate is applicable to all real property other than land classified as agricultural and horticultural land. The second tax credit rate is only applicable to the portion of the real property parcel classified as agricultural and horticultural land and agricultural and horticultural land receiving special valuation. This is referred to as the “agland tax credit.”
Real property (non-agland) tax credit rate is $119.83 per $100,000 of valuation. Agland tax credit rate is $143.78 per $100,000 of valuation.
The Real property (non-agland) rate of credit was determined as follows:
• $274,861,329 divided by real property (non-agland) value 229,374,358,871=.0011983 or $119.83 per 100,000 of taxable real property (non-agland) value.
The Agland rate of credit was determined as follows:
• $152,207,237 divided by taxable agland value 105,861,257,027 = .0014378 or $143.78 per 100,000 of taxable agland value.
The real property tax credit rate is multiplied by the parcel’s taxable value (non-agland) and the agland rate tax credit rate is multiplied by the taxable value of land classified as agricultural and horticultural land and agricultural and horticultural land receiving special value.
The School District Property Tax Credit Relief Act (SDPTRA) provides a property tax credit based upon the real property taxes levied by school districts. Eligible school district taxes exclude voter approved bonds and overrides of levy limits. The relief provided is a proration of taxes levied, using two calculations. First, the eligible school district taxes levied in each county is divided by the eligible school taxes levied in the state. Then, each county treasurer will calculate the credit on the parcel using the following formula (2023 Eligible school tax levied on the parcel ÷ 2023 Eligible school tax levied in the county) * County Total 2024 SDPTRA Credit Amount.
The total amount of the credit available for 2024 is $750,000,000 as provided by Neb. Rev. Stat. §77-7304.
The real property tax credit and the school district property tax relief credit are not a reduction in the levy or tax rate. The credits have no impact on the property tax rates set by political subdivisions. All credits will be shown separately on tax statements as credits after the full taxes levied. The property tax credits will be reflected as a reduction in real property tax due on the 2024 tax statements.
The amounts of Real Property Tax Credit and the School District Property Tax Relief Credit for 2024 are being certified to the State Treasurer and the counties today. Attached are three documents. Two documents relate to the Real Property Tax Credit and the third to the School District Property Tax Relief Credit.
Additional information can be found at revenue.nebraska.gov/PAD. For the Real Property Tax Credit, see Directive 24-1. For the School District Property Tax Relief Credit, see Directive 24-2.