LB924 LB924
2024 2024
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 924
Introduced by McKinney, 11.
Read first time January 04, 2024
Committee: Revenue
1 A BILL FOR AN ACT relating to revenue and taxation; to amend sections
2 77-3501, 77-3501.01, 77-3505.02, 77-3506.02, 77-3506.03, 77-3509.01,
3 77-3509.03, 77-3510, 77-3511, 77-3514, 77-3516, 77-3521, and
4 77-3529, Reissue Revised Statutes of Nebraska, sections 77-3517 and
5 77-3523, Revised Statutes Cumulative Supplement, 2022, and sections
6 77-3512, 77-3513, 77-3522, and 77-4212, Revised Statutes Supplement,
7 2023; to define a term; to provide a homestead exemption for
8 individuals that reside in qualified census tracts; to harmonize
9 provisions; to repeal the original sections; and to declare an
10 emergency.
11 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 77-3501, Reissue Revised Statutes of Nebraska, is
2 amended to read:
3 77-3501 For purposes of sections 77-3501 to 77-3529 and sections 4
4 and 7 of this act, unless the context otherwise requires, the definitions
5 found in sections 77-3501.01 to 77-3505.05 and section 4 of this act
6 shall be used.
7 Sec. 2. Section 77-3501.01, Reissue Revised Statutes of Nebraska, is
8 amended to read:
9 77-3501.01 (1) For purposes of section 77-3507, exempt amount shall
10 mean the lesser of (a) the taxable value of the homestead or (b) one
11 hundred percent of the average assessed value of single-family
12 residential property in the claimant's county of residence as determined
13 in section 77-3506.02 or forty thousand dollars, whichever is greater.
14 (2) For purposes of section 77-3508 and section 7 of this act,
15 exempt amount shall mean the lesser of (a) the taxable value of the
16 homestead or (b) one hundred twenty percent of the average assessed value
17 of single-family residential property in the claimant's county of
18 residence as determined in section 77-3506.02 or fifty thousand dollars,
19 whichever is greater.
20 (3) For purposes of section 77-3506, exempt amount shall mean the
21 taxable value of the homestead.
22 Sec. 3. Section 77-3505.02, Reissue Revised Statutes of Nebraska, is
23 amended to read:
24 77-3505.02 Maximum value shall mean:
25 (1) For applicants eligible under section 77-3507, two hundred
26 percent of the average assessed value of single-family residential
27 property in the claimant's county of residence as determined in section
28 77-3506.02 or ninety-five thousand dollars, whichever is greater; and
29 (2) For applicants eligible under section 77-3508 and section 7 of
30 this act, two hundred twenty-five percent of the average assessed value
31 of single-family residential property in the claimant's county of
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1 residence as determined in section 77-3506.02 or one hundred ten thousand
2 dollars, whichever is greater.
3 Sec. 4. Qualified census tract means a qualified census tract as
4 defined in 26 U.S.C. 42(d)(5)(B)(ii)(I), as such section existed on
5 January 1, 2024.
6 Sec. 5. Section 77-3506.02, Reissue Revised Statutes of Nebraska, is
7 amended to read:
8 77-3506.02 After county board of equalization action pursuant to
9 sections 77-1502 to 77-1504.01 and on or before September 1 each year,
10 the county assessor shall certify to the Department of Revenue the
11 average assessed value of single-family residential property in the
12 county for the current year for purposes of sections 77-3507 and 77-3508
13 and section 7 of this act.
14 The county assessor shall determine the current average assessed
15 value of single-family residential property from all real property
16 records containing dwellings, mobile homes, and duplexes all of which are
17 designed for occupancy as single-family residential property and any
18 associated land not to exceed one acre.
19 The county assessor shall also report to the Department of Revenue
20 the computed exempt amounts pursuant to section 77-3501.01.
21 Sec. 6. Section 77-3506.03, Reissue Revised Statutes of Nebraska, is
22 amended to read:
23 77-3506.03 For homesteads valued at or above the maximum value, the
24 exempt amount for any exemption under section 77-3507 or 77-3508 or
25 section 7 of this act shall be reduced by ten percent for each two
26 thousand five hundred dollars of value by which the homestead exceeds the
27 maximum value and any homestead which exceeds the maximum value by twenty
28 thousand dollars or more is not eligible for any exemption under section
29 77-3507 or 77-3508 or section 7 of this act. This section shall not apply
30 to any exemption under section 77-3506.
31 Sec. 7. (1)(a) All homesteads in this state shall be assessed for
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1 taxation the same as other property, except that there shall be exempt
2 from taxation, on any homestead described in subdivision (b) of this
3 subsection, a percentage of the exempt amount as limited by section
4 77-3506.03. The exemption shall be based on the household income of a
5 claimant pursuant to subsections (2) through (4) of this section.
6 (b) The exemption described in subdivision (a) of this subsection
7 shall apply to homesteads of individuals that reside in qualified census
8 tracts.
9 (2) For 2024, for a married or closely related claimant as described
10 in subsection (1) of this section, the percentage of the exempt amount
11 for which the claimant shall be eligible shall be the percentage in
12 Column B which corresponds with the claimant's household income in Column
13 A in the table found in this subsection.
14 Column A Column B
15 Household Income Percentage
16 In Dollars Of Relief
17 0 through 30,000 100
18 30,001 through 31,700 90
19 31,701 through 33,400 80
20 33,401 through 35,100 70
21 35,101 through 36,800 60
22 36,801 through 38,500 50
23 38,501 through 40,200 40
24 40,201 through 41,900 30
25 41,901 through 43,600 20
26 43,601 through 45,300 10
27 45,301 and over 0
28 (3) For 2024, for a single claimant as described in subsection (1)
29 of this section, the percentage of the exempt amount for which the
30 claimant shall be eligible shall be the percentage in Column B which
31 corresponds with the claimant's household income in Column A in the table
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1 found in this subsection.
2 Column A Column B
3 Household Income Percentage
4 In Dollars Of Relief
5 0 through 25,000 100
6 25,001 through 26,400 90
7 26,401 through 27,800 80
8 27,801 through 29,200 70
9 29,201 through 30,600 60
10 30,601 through 32,000 50
11 32,001 through 33,400 40
12 33,401 through 34,800 30
13 34,801 through 36,200 20
14 36,201 through 37,600 10
15 37,601 and over 0
16 (4) For exemption applications filed in calendar year 2025 and each
17 calendar year thereafter, the income eligibility amounts in subsections
18 (2) and (3) of this section shall be adjusted by the percentage change in
19 the Consumer Price Index for All Urban Consumers published by the federal
20 Bureau of Labor Statistics from the twelve months ending on August 31,
21 2023, to the twelve months ending on August 31 of the year preceding the
22 applicable calendar year. The income eligibility amounts shall be
23 adjusted for cumulative inflation since 2024. If any amount is not a
24 multiple of one hundred dollars, the amount shall be rounded to the next
25 lower multiple of one hundred dollars.
26 Sec. 8. Section 77-3509.01, Reissue Revised Statutes of Nebraska, is
27 amended to read:
28 77-3509.01 If an owner of a homestead applies for an exemption under
29 section 77-3506, 77-3507, or 77-3508 or section 7 of this act for any
30 year and such owner subsequently becomes the owner of another homestead
31 prior to August 15 of such year, the owner may file an application with
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1 the county assessor of the county where the new homestead is located for
2 a transfer of the exemption to the new homestead. The owner shall file
3 the application for transfer with the county assessor on or before August
4 15 of such year or within thirty days after receiving a notice of
5 rejection on the owner's application for exemption for the original
6 homestead. The county assessor shall examine each application for
7 transfer and determine whether or not the new homestead, except for the
8 January 1 through August 15 ownership and occupancy requirement and the
9 income requirements, is eligible for exemption under section 77-3506,
10 77-3507, or 77-3508 or section 7 of this act. If the application for
11 transfer is approved by the county assessor, he or she shall make a
12 deduction upon the assessment rolls using the same criteria as previously
13 applied to the original homestead. The county assessor may allow the
14 application for transfer to also be considered an application for a
15 homestead exemption for the subsequent year.
16 Sec. 9. Section 77-3509.03, Reissue Revised Statutes of Nebraska, is
17 amended to read:
18 77-3509.03 All property tax statements for homesteads granted an
19 exemption in sections 77-3506, 77-3507, and 77-3508 and section 7 of this
20 act shall show the amount of the exemption, the tax that would otherwise
21 be due, and a statement that the tax loss shall be reimbursed by the
22 state as a homestead exemption.
23 Sec. 10. Section 77-3510, Reissue Revised Statutes of Nebraska, is
24 amended to read:
25 77-3510 On or before February 1 of each year, the Tax Commissioner
26 shall prescribe forms to be used by all claimants for homestead exemption
27 or for transfer of homestead exemption. Such forms shall contain
28 provisions for the showing of all information which the Tax Commissioner
29 may deem necessary to (1) enable the county officials and the Tax
30 Commissioner to determine whether each claim for exemption under sections
31 77-3506, 77-3507, and 77-3508 and section 7 of this act should be allowed
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1 and (2) enable the county assessor to determine whether each claim for
2 transfer of homestead exemption pursuant to section 77-3509.01 should be
3 allowed. It shall be the duty of the county assessor of each county in
4 this state to furnish such forms, upon request, to each person desiring
5 to make application for homestead exemption or for transfer of homestead
6 exemption. The forms so prescribed shall be used uniformly throughout the
7 state, and no application for exemption or for transfer of homestead
8 exemption shall be allowed unless the applicant uses the prescribed form
9 in making an application. The forms shall require the attachment of an
10 income statement for any applicant seeking an exemption under section
11 77-3507 or 77-3508 or section 7 of this act as prescribed by the Tax
12 Commissioner fully accounting for all household income. The Tax
13 Commissioner shall provide to each county assessor claim forms and
14 address lists of applicants from the prior year in the manner approved by
15 the Tax Commissioner. The application and information contained on any
16 attachments to the application shall be confidential and available to tax
17 officials only.
18 Sec. 11. Section 77-3511, Reissue Revised Statutes of Nebraska, is
19 amended to read:
20 77-3511 The application for homestead exemption or for transfer of
21 homestead exemption shall be signed by the owner of the property who
22 qualifies for exemption under sections 77-3501 to 77-3529 and sections 4
23 and 7 of this act unless the owner is an incompetent or unable to make
24 such application, in which case it shall be signed by the guardian. If an
25 owner who in all respects qualifies for a homestead exemption under such
26 sections dies after January 1 and before the last day for filing an
27 application for a homestead exemption and before applying for a homestead
28 exemption, his or her personal representative may file the application
29 for exemption on or before the last day for filing an application for a
30 homestead exemption of that year if the surviving spouse of such owner
31 continues to occupy the homestead. Any exemption granted as a result of
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1 such application signed by a personal representative shall be in effect
2 for only the year in which the owner died.
3 Sec. 12. Section 77-3512, Revised Statutes Supplement, 2023, is
4 amended to read:
5 77-3512 (1) It shall be the duty of each owner who wants a homestead
6 exemption under section 77-3506, 77-3507, or 77-3508 or section 7 of this
7 act to file an application therefor with the county assessor of the
8 county in which the homestead is located after February 1 and on or
9 before June 30 of each year, except that:
10 (a) The county board of the county in which the homestead is located
11 may, by majority vote, extend the deadline for an applicant to on or
12 before July 20. An extension shall not be granted to an applicant who
13 received an extension in the immediately preceding year;
14 (b) An owner may file a late application pursuant to section
15 77-3514.01 if he or she includes documentation of a medical condition
16 which impaired the owner's ability to file the application in a timely
17 manner;
18 (c) An owner may file a late application pursuant to section
19 77-3514.01 if he or she includes a copy of the death certificate of a
20 spouse who died during the year for which the exemption is requested;
21 (d) A veteran qualifying for a homestead exemption under subdivision
22 (2)(a) of section 77-3506 shall only be required to file an application
23 in every subsequent year evenly divisible by five; and
24 (e) If a veteran who has been granted a homestead exemption under
25 subdivision (2)(a) of section 77-3506 dies during the five-year exemption
26 period, the surviving spouse of such veteran shall continue to receive
27 such exemption for the remainder of the five-year exemption period. After
28 the expiration of the five-year exemption period, the surviving spouse
29 shall be required to file for an exempti