LB440 LB440
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 440
Introduced by Albrecht, 17.
Read first time January 13, 2023
Committee: Revenue
1 A BILL FOR AN ACT relating to school funding; to amend sections 77-3442,
2 79-1098, 79-10,100, 79-10,101, 79-10,120, and 79-10,126, Revised
3 Statutes Cumulative Supplement, 2022; to change provisions relating
4 to certain school taxes and special funds; to provide a termination
5 date; to harmonize provisions; to repeal the original sections; and
6 to declare an emergency.
7 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 77-3442, Revised Statutes Cumulative Supplement,
2 2022, is amended to read:
3 77-3442 (1) Property tax levies for the support of local governments
4 for fiscal years beginning on or after July 1, 1998, shall be limited to
5 the amounts set forth in this section except as provided in section
6 77-3444.
7 (2)(a) Except as provided in subdivisions (2)(b) and (2)(e) of this
8 section, school districts and multiple-district school systems may levy a
9 maximum levy of one dollar and five cents per one hundred dollars of
10 taxable valuation of property subject to the levy.
11 (b) For each fiscal year prior to fiscal year 2017-18, learning
12 communities may levy a maximum levy for the general fund budgets of
13 member school districts of ninety-five cents per one hundred dollars of
14 taxable valuation of property subject to the levy. The proceeds from the
15 levy pursuant to this subdivision shall be distributed pursuant to
16 section 79-1073.
17 (c) Except as provided in subdivision (2)(e) of this section, for
18 each fiscal year prior to fiscal year 2017-18, school districts that are
19 members of learning communities may levy for purposes of such districts'
20 general fund budget and special building funds a maximum combined levy of
21 the difference of one dollar and five cents on each one hundred dollars
22 of taxable property subject to the levy minus the learning community levy
23 pursuant to subdivision (2)(b) of this section for such learning
24 community.
25 (d) Excluded from the limitations in subdivisions (2)(a) and (2)(c)
26 of this section are (i) amounts levied to pay for current and future sums
27 agreed to be paid by a school district to certificated employees in
28 exchange for a voluntary termination of employment occurring prior to
29 September 1, 2017, (ii) amounts levied by a school district otherwise at
30 the maximum levy pursuant to subdivision (2)(a) of this section to pay
31 for current and future qualified voluntary termination incentives for
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1 certificated teachers pursuant to subsection (3) of section 79-8,142 that
2 are not otherwise included in an exclusion pursuant to subdivision (2)(d)
3 of this section, (iii) amounts levied by a school district otherwise at
4 the maximum levy pursuant to subdivision (2)(a) of this section to pay
5 for seventy-five percent of the current and future sums agreed to be paid
6 to certificated employees in exchange for a voluntary termination of
7 employment occurring between September 1, 2017, and August 31, 2018, as a
8 result of a collective-bargaining agreement in force and effect on
9 September 1, 2017, that are not otherwise included in an exclusion
10 pursuant to subdivision (2)(d) of this section, (iv) amounts levied by a
11 school district otherwise at the maximum levy pursuant to subdivision (2)
12 (a) of this section to pay for fifty percent of the current and future
13 sums agreed to be paid to certificated employees in exchange for a
14 voluntary termination of employment occurring between September 1, 2018,
15 and August 31, 2019, as a result of a collective-bargaining agreement in
16 force and effect on September 1, 2017, that are not otherwise included in
17 an exclusion pursuant to subdivision (2)(d) of this section, (v) amounts
18 levied by a school district otherwise at the maximum levy pursuant to
19 subdivision (2)(a) of this section to pay for twenty-five percent of the
20 current and future sums agreed to be paid to certificated employees in
21 exchange for a voluntary termination of employment occurring between
22 September 1, 2019, and August 31, 2020, as a result of a collective-
23 bargaining agreement in force and effect on September 1, 2017, that are
24 not otherwise included in an exclusion pursuant to subdivision (2)(d) of
25 this section, (vi) amounts levied in compliance with sections 79-10,110
26 and 79-10,110.02, (vii) amounts levied pursuant to subsection (4) of
27 section 79-10,120, and (viii) amounts levied pursuant to subsection (3)
28 of section 79-10,120 for projects that commence prior to such amounts
29 being levied and (vii) amounts levied to pay for special building funds
30 and sinking funds established for projects commenced prior to April 1,
31 1996, for construction, expansion, or alteration of school district
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1 buildings. For purposes of this subsection, commenced means any action
2 taken by the school board on the record which commits the board to expend
3 district funds in planning, constructing, or carrying out the project.
4 (e) Federal aid school districts may exceed the maximum levy
5 prescribed by subdivision (2)(a) or (2)(c) of this section only to the
6 extent necessary to qualify to receive federal aid pursuant to 20 U.S.C.
7 7701 et seq., as such sections existed on January 1, 2023 Title VIII of
8 Public Law 103-382, as such title existed on September 1, 2001. For
9 purposes of this subdivision, federal aid school district means any
10 school district which receives ten percent or more of the revenue for its
11 general fund budget from federal government sources pursuant to 20 U.S.C.
12 7701 et seq., as such sections existed on January 1, 2023 Title VIII of
13 Public Law 103-382, as such title existed on September 1, 2001.
14 (f) For each fiscal year, learning communities may levy a maximum
15 levy of one-half cent on each one hundred dollars of taxable property
16 subject to the levy for elementary learning center facility leases, for
17 remodeling of leased elementary learning center facilities, and for up to
18 fifty percent of the estimated cost for focus school or program capital
19 projects approved by the learning community coordinating council pursuant
20 to section 79-2111.
21 (g) For each fiscal year, learning communities may levy a maximum
22 levy of one and one-half cents on each one hundred dollars of taxable
23 property subject to the levy for early childhood education programs for
24 children in poverty, for elementary learning center employees, for
25 contracts with other entities or individuals who are not employees of the
26 learning community for elementary learning center programs and services,
27 and for pilot projects, except that no more than ten percent of such levy
28 may be used for elementary learning center employees.
29 (3) For each fiscal year, community college areas may levy the
30 levies provided in subdivisions (2)(a) through (c) of section 85-1517, in
31 accordance with the provisions of such subdivisions. A community college
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1 area may exceed the levy provided in subdivision (2)(b) of section
2 85-1517 by the amount necessary to retire general obligation bonds
3 assumed by the community college area or issued pursuant to section
4 85-1515 according to the terms of such bonds or for any obligation
5 pursuant to section 85-1535 entered into prior to January 1, 1997.
6 (4)(a) Natural resources districts may levy a maximum levy of four
7 and one-half cents per one hundred dollars of taxable valuation of
8 property subject to the levy.
9 (b) Natural resources districts shall also have the power and
10 authority to levy a tax equal to the dollar amount by which their
11 restricted funds budgeted to administer and implement ground water
12 management activities and integrated management activities under the
13 Nebraska Ground Water Management and Protection Act exceed their
14 restricted funds budgeted to administer and implement ground water
15 management activities and integrated management activities for FY2003-04,
16 not to exceed one cent on each one hundred dollars of taxable valuation
17 annually on all of the taxable property within the district.
18 (c) In addition, natural resources districts located in a river
19 basin, subbasin, or reach that has been determined to be fully
20 appropriated pursuant to section 46-714 or designated as overappropriated
21 pursuant to section 46-713 by the Department of Natural Resources shall
22 also have the power and authority to levy a tax equal to the dollar
23 amount by which their restricted funds budgeted to administer and
24 implement ground water management activities and integrated management
25 activities under the Nebraska Ground Water Management and Protection Act
26 exceed their restricted funds budgeted to administer and implement ground
27 water management activities and integrated management activities for
28 FY2005-06, not to exceed three cents on each one hundred dollars of
29 taxable valuation on all of the taxable property within the district for
30 fiscal year 2006-07 and each fiscal year thereafter through fiscal year
31 2017-18.
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1 (5) Any educational service unit authorized to levy a property tax
2 pursuant to section 79-1225 may levy a maximum levy of one and one-half
3 cents per one hundred dollars of taxable valuation of property subject to
4 the levy.
5 (6)(a) Incorporated cities and villages which are not within the
6 boundaries of a municipal county may levy a maximum levy of forty-five
7 cents per one hundred dollars of taxable valuation of property subject to
8 the levy plus an additional five cents per one hundred dollars of taxable
9 valuation to provide financing for the municipality's share of revenue
10 required under an agreement or agreements executed pursuant to the
11 Interlocal Cooperation Act or the Joint Public Agency Act. The maximum
12 levy shall include amounts levied to pay for sums to support a library
13 pursuant to section 51-201, museum pursuant to section 51-501, visiting
14 community nurse, home health nurse, or home health agency pursuant to
15 section 71-1637, or statue, memorial, or monument pursuant to section
16 80-202.
17 (b) Incorporated cities and villages which are within the boundaries
18 of a municipal county may levy a maximum levy of ninety cents per one
19 hundred dollars of taxable valuation of property subject to the levy. The
20 maximum levy shall include amounts paid to a municipal county for county
21 services, amounts levied to pay for sums to support a library pursuant to
22 section 51-201, a museum pursuant to section 51-501, a visiting community
23 nurse, home health nurse, or home health agency pursuant to section
24 71-1637, or a statue, memorial, or monument pursuant to section 80-202.
25 (7) Sanitary and improvement districts which have been in existence
26 for more than five years may levy a maximum levy of forty cents per one
27 hundred dollars of taxable valuation of property subject to the levy, and
28 sanitary and improvement districts which have been in existence for five
29 years or less shall not have a maximum levy. Unconsolidated sanitary and
30 improvement districts which have been in existence for more than five
31 years and are located in a municipal county may levy a maximum of eighty-
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1 five cents per hundred dollars of taxable valuation of property subject
2 to the levy.
3 (8) Counties may levy or authorize a maximum levy of fifty cents per
4 one hundred dollars of taxable valuation of property subject to the levy,
5 except that five cents per one hundred dollars of taxable valuation of
6 property subject to the levy may only be levied to provide financing for
7 the county's share of revenue required under an agreement or agreements
8 executed pursuant to the Interlocal Cooperation Act or the Joint Public
9 Agency Act. The maximum levy shall include amounts levied to pay for sums
10 to support a library pursuant to section 51-201 or museum pursuant to
11 section 51-501. The county may allocate up to fifteen cents of its
12 authority to other political subdivisions subject to allocation of
13 property tax authority under subsection (1) of section 77-3443 and not
14 specifically covered in this section to levy taxes as authorized by law
15 which do not collectively exceed fifteen cents per one hundred dollars of
16 taxable valuation on any parcel or item of taxable property. The county
17 may allocate to one or more other political subdivisions subject to
18 allocation of property tax authority by the county under subsection (1)
19 of section 77-3443 some or all of the county's five cents per one hundred
20 dollars of valuation authorized for support of an agreement or agreements
21 to be levied by the political subdivision for the purpose of supporting
22 that political subdivision's share of revenue required under an agreement
23 or agreements executed pursuant to the Interlocal Cooperation Act or the
24 Joint Public Agency Act. If an allocation by a county would cause another
25 county to exceed its levy authority under this section, the second county
26 may exceed the levy authority in order to levy the amount allocated.
27 (9) Municipal counties may levy or authorize a maximum levy of one
28 dollar per one hundred dollars of taxable valuation of property subject
29 to the levy. The municipal county may allocate levy authority to any
30 political subdivision or entity subject to allocation under section
31 77-3443.
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1 (10) Beginning July 1, 2016, rural and suburban fire protection
2 districts may levy a maximum levy of ten and one-half cents per one
3 hundred dollars of taxable valuation of property subject to the levy if
4 (a) such district is located in a county that had a levy pursuant to
5 subsection (8) of this section in the previous year of at least forty
6 cents per one hundred dollars of taxable valuation of property subject to
7 the levy or (b) such district had a levy request pursuant to section
8 77-3443 in any of the three previous years and the county board of the
9 county in which the greatest portion of the valuation of such district is
10 located did not authorize any levy authority to such district in such
11 year.
12 (11) A regional metropolitan transit authority may levy a maximum
13 levy of ten cents per one hundred dollars of taxable valuation of
14 property subject to the levy for each fiscal year that commences on the
15 January 1 that follows the effective date of the conversion of the
16 transit authority established under the Transit Authority Law into the
17 regional metropolitan transit authority.
18 (12) Property tax levies (a) for judgments, except judgments or
19 orders from the Commission of Industrial Relations, obtained against a
20 political subdivision which require or obligate a political subdivision
21 to pay such judgment, to the extent such