It’s no secret that Nebraska has a heavy property tax burden. However, there is help for low-income people who are 65 or older, disabled, or veterans. They may qualify for the Homestead Tax Exemption. The Homestead Exemption gives those who are eligible a reduction on property taxes by excluding all or a portion of the value of a person’s home and up to one acre of land that the home is built on.
Homeowners must file every year to receive this break on their property taxes. In February, the county assessor mails a postcard to people who have received the homestead exemption in the past. They can pick up their pre-printed application from the assessor’s office on the first floor of the Box Butte County Courthouse. The applicant has to complete the form and file it with the county assessor by June 30. It is then forwarded to the Nebraska Department of Revenue to review income and determine whether the applicant is qualified to receive the break on their property taxes.
People who think they may qualify can pick up the forms from the county assessor’s office or download the application and directions from https://revenue.nebraska.gov/PAD/homestead-exemption. Applicants must be U.S. citizens, and own and occupy the home as of January 1 of the year they are applying.
There are specific categories of homeowners eligible for the homestead exemption, and these can be found on the website. Primary recipients are homeowners age 65 or older as of January 1 of the year they are applying, veterans, and disabled. The disability category is very strict and must be documented by a physician or the VA. The spouse of a veteran may continue to receive the homestead exemption after the veteran has died. A veteran who is 100% disabled receives a 100% homestead exemption regardless of the value of the property keeping in mind the restriction of house, garage, and one acre of land or a lot.
Homestead exemption eligibility is based on income and the value of the home. An exemption can be claimed up to 200% of the average assessed value for the county. The average assessed value of single-family residential property in Box Butte County was $122,014 in 2023 The 200% figure is $244,028. The exemption is reduced by 10% for every $2,500 that the assessed value exceeds the 200% figure. If a home is worth more than $244,028, the home is not eligible for the homestead exemption, with the exception of 100% disabled veterans.
The maximum exemption amount to be subtracted from property tax owed is the taxable value of the homestead up to $122,014. The exemption amount may then be reduced by the state using the percentage from the income table. Tables are used to see whether the household’s income allows it to be classified as low income. Basically, a single person earning less than about $34,900.99 or married earning less than $41,000.99 qualifies at 100%. The percentage decreases as income increases, then goes to zero at $51,301 for single, $60,901 for married. Amounts are slightly higher for veterans.
Medical expenses that are greater than four percent of your household income may be deducted in determining your eligibility for the exemption. You may deduct the cost of health insurance premiums, including Medicare Part B and supplemental health insurance premiums; long-term care insurance premiums; the cost of goods and services from a licensed health practitioner or facility; travel costs for out-of-town medical appointments or hospital stays; and the cost of insulin and prescription drugs.
The Nebraska Department of Revenue website gives several examples showing how the homestead exemption would be calculated for various scenarios.
The state of Nebraska does reimburse the counties and local governmental subdivisions for the taxes lost due to homestead exemptions.
If you have questions or think you may qualify, talk to Michelle Robinson, Box Butte County Assessor. Her office is in the Box Butte County Courthouse, 515 Box Butte Ave, Suite 102 in Alliance. Or phone (308) 762-6100. If Robinson or her staff cannot answer a specific question, they can find out!
The Nebraska Homestead Exemption helps low income households shield a portion of their home’s value from property taxes. Homes with lower assessed values and households with lower incomes benefit the most. If you think you may be eligible, be sure to apply!