Bill Summary – FastDemocracy

LB72                                                                     LB72
                                                                   2024
                               LEGISLATURE OF NEBRASKA
                            ONE HUNDRED EIGHTH LEGISLATURE
                                FIRST SPECIAL SESSION
                       LEGISLATIVE BILL 72
       Introduced by McDonnell, 5.
       Read first time July 29, 2024
       Committee: Revenue
   A BILL FOR AN ACT relating to property taxes; to amend section 77-201,
       Revised Statutes Cumulative Supplement, 2022; to change provisions
      relating to the valuation of residential real property; to provide
      for applicability; and to repeal the original section.
  Be it enacted by the people of the State of Nebraska,
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LB72                                                                                                    LB72
                                                                                                  2024
          Section 1. Section 77-201, Revised Statutes Cumulative Supplement,
   2022, is amended to read:
         77-201 (1) Except as provided in subsections (2) through (5) (4) of
   this section, all real property in this state, not expressly exempt
  therefrom, shall be subject to taxation and shall be valued at its actual
  value.
          (2) Agricultural land and horticultural land as defined in section
  77-1359 shall constitute a separate and distinct class of property for
   purposes of   property taxation,       shall be   subject to    taxation,    unless
   expressly exempt from taxation,   and shall be   valued at    seventy-five
   percent of its actual value, except that for school district taxes levied
   to pay the principal and interest on bonds that are approved by a vote of
  the people on or after January 1, 2022, such land shall be valued at
  fifty percent of its actual value.
          (3) Agricultural land and horticultural land actively devoted to
   agricultural or horticultural purposes which has value for purposes other
   than agricultural or     horticultural uses and which meets the
   qualifications for special valuation under section       77-1344       shall
  constitute a separate and distinct class of property for purposes of
  property taxation, shall be subject to taxation, and shall be valued for
  taxation at seventy-five percent of its special valuation as defined in
  section 77-1343, except that for school district taxes levied to pay the
   principal and interest on bonds that are approved by a vote of the people
  on or after January 1, 2022, such land shall be valued at fifty percent
  of its special valuation as defined in section 77-1343.
          (4)   Historically significant real property which meets the
   qualifications for historic rehabilitation valuation under sections
  77-1385 to 77-1394 shall be valued for taxation as provided in such
  sections.
          (5)(a) Residential real property shall be valued for taxation at its
  actual value, except that the valuations for such property shall not
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LB72                                                                                                           LB72
                                                                                                         2024
  increase by more than five percent per year.
         (b) Since the effectiveness of this subsection is dependent upon the
  adoption of an amendment to the Constitution of Nebraska, this subsection
  shall not be in force or take effect until the date on which the Governor
  proclaims such a constitutional amendment, at which time this subsection
  shall be in full force and effect.
         (6) (5) Tangible personal property, not including motor vehicles,
  trailers, and semitrailers registered for operation on the highways of
  this state, shall constitute a separate and distinct class of property
  for purposes of property taxation, shall be subject to taxation, unless
   expressly exempt from taxation, and shall be valued at its net book
  value. Tangible personal property transferred as a gift or devise or as
   part of    a transaction which is     not    a purchase shall be   subject to
   taxation based upon the date the property was acquired by the previous
  owner and at     the previous owner's Nebraska adjusted basis.   Tangible
  personal property acquired as replacement property for converted property
  shall be subject to taxation based upon the date the converted property
  was acquired and at the Nebraska adjusted basis of the converted property
  unless insurance proceeds are payable by reason of the conversion. For
   purposes of      this subsection,       (a)    converted property means tangible
   personal property which is compulsorily or involuntarily converted as a
   result of     its destruction in     whole or    in part,     theft,      seizure,
   requisition, or condemnation, or the threat or imminence thereof, and no
   gain or loss is recognized for federal or state income tax purposes by
   the holder of    the property as    a result of    the conversion and    (b)
  replacement property means tangible personal property acquired within two
   years after the close of the calendar year in which tangible personal
   property was converted and which is, except for date of construction or
   manufacture, substantially the same as the converted property.
          Sec.       2.      Original section        77-201,         Revised Statutes Cumulative
   Supplement, 2022, is repealed.
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Statutes affected: 
Introduced: 77-201