LB152 LB152
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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 152
Introduced by Cavanaugh, J., 9.
Read first time January 13, 2025
Committee:
1 A BILL FOR AN ACT relating to revenue and taxation; to amend sections
2 77-3509.01, 77-3509.03, 77-3510, 77-3514, and 77-3516, Reissue
3 Revised Statutes of Nebraska, and sections 77-3501, 77-3505.06,
4 77-3506.03, 77-3511, 77-3512, 77-3513, 77-3517, 77-3521, 77-3522,
5 77-3523, 77-3529, 77-4212, and 77-7305, Revised Statutes Cumulative
6 Supplement, 2024; to state findings and declarations; to create a
7 homestead exemption; to harmonize provisions; to provide an
8 operative date; and to repeal the original sections.
9 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 77-3501, Revised Statutes Cumulative Supplement,
2 2024, is amended to read:
3 77-3501 For purposes of sections 77-3501 to 77-3529 and section 4 of
4 this act, unless the context otherwise requires, the definitions found in
5 sections 77-3501.01 to 77-3505.06 shall be used.
6 Sec. 2. Section 77-3505.06, Revised Statutes Cumulative Supplement,
7 2024, is amended to read:
8 77-3505.06 Occupy means to reside on a property with the intention
9 of maintaining the property as the owner's primary residence. A departure
10 from the property for reasons of health or legal duty shall not
11 disqualify the owner of the property from receiving an exemption under
12 sections 77-3501 to 77-3529 and section 4 of this act, so long as the
13 owner demonstrates an intention to return to the property.
14 Sec. 3. Section 77-3506.03, Revised Statutes Cumulative Supplement,
15 2024, is amended to read:
16 77-3506.03 (1) Except as provided in subsection (2) of this section,
17 for homesteads valued at or above the maximum value, the exempt amount
18 for any exemption under section 77-3507 or 77-3508 shall be reduced by
19 ten percent for each two thousand five hundred dollars of value by which
20 the homestead exceeds the maximum value and any homestead which exceeds
21 the maximum value by twenty thousand dollars or more is not eligible for
22 any exemption under section 77-3507 or 77-3508.
23 (2)(a) For homesteads valued at or above the maximum value, the
24 exempt amount shall not be reduced and the homestead shall remain
25 eligible for an exemption under section 77-3507 or 77-3508 for the
26 current year if the homestead:
27 (i) Received an exemption under section 77-3507 or 77-3508 in the
28 previous year;
29 (ii) Was valued below the maximum value in such previous year; and
30 (iii) Is not ineligible for an exemption under section 77-3507 or
31 77-3508 for any reason other than as provided in subsection (1) of this
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1 section.
2 (b) If a homestead remains eligible for an exemption under
3 subdivision (a) of this subsection for any year, the homestead shall
4 continue to be eligible for each year thereafter unless the homestead is
5 not eligible for such exemption for any reason other than as provided in
6 subsection (1) of this section.
7 (c) The percentage of the exempt amount for a homestead for any year
8 such homestead is valued at or above the maximum value and remains
9 eligible for exemption under this subsection shall be equal to the
10 percentage of the exempt amount for the homestead in the last year the
11 homestead received an exemption under section 77-3507 or 77-3508 and was
12 valued below the maximum value.
13 (d) If the homestead's increase in value from the previous year to a
14 value at or above the maximum value is due to improvements to the
15 homestead, this subsection shall not apply to such homestead.
16 (3) This section shall not apply to any exemption under section
17 77-3506 and section 4 of this act.
18 Sec. 4. (1) The Legislature finds and declares that:
19 (a) Pursuant to Article VIII, section 2, of the Constitution of
20 Nebraska, the Legislature may exempt from taxation a portion of the value
21 of any residence actually occupied as a homestead by any classification
22 of owners;
23 (b) The existing homestead exemption system should be protected and
24 expanded; and
25 (c) Exempting a larger portion of homesteads from taxation will
26 provide broad-based property tax relief to Nebraska residents.
27 (2) All homesteads in this state shall be assessed for taxation the
28 same as other property, except that commencing January 1, 2026, there
29 shall be exempt from taxation of homesteads the first one hundred
30 thousand dollars of the actual value of the homestead.
31 (3) The exemptions in sections 77-3506, 77-3507, and 77-3508 shall
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1 be in addition to the exemption described in subsection (2) of this
2 section.
3 Sec. 5. Section 77-3509.01, Reissue Revised Statutes of Nebraska, is
4 amended to read:
5 77-3509.01 If an owner of a homestead applies for an exemption under
6 section 77-3506, 77-3507, or 77-3508 or section 4 of this act for any
7 year and such owner subsequently becomes the owner of another homestead
8 prior to August 15 of such year, the owner may file an application with
9 the county assessor of the county where the new homestead is located for
10 a transfer of the exemption to the new homestead. The owner shall file
11 the application for transfer with the county assessor on or before August
12 15 of such year or within thirty days after receiving a notice of
13 rejection on the owner's application for exemption for the original
14 homestead. The county assessor shall examine each application for
15 transfer and determine whether or not the new homestead, except for the
16 January 1 through August 15 ownership and occupancy requirement and the
17 income requirements, is eligible for exemption under section 77-3506,
18 77-3507, or 77-3508 or section 4 of this act. If the application for
19 transfer is approved by the county assessor, he or she shall make a
20 deduction upon the assessment rolls using the same criteria as previously
21 applied to the original homestead. The county assessor may allow the
22 application for transfer to also be considered an application for a
23 homestead exemption for the subsequent year.
24 Sec. 6. Section 77-3509.03, Reissue Revised Statutes of Nebraska, is
25 amended to read:
26 77-3509.03 All property tax statements for homesteads granted an
27 exemption in sections 77-3506, 77-3507, and 77-3508 and section 4 of this
28 act shall show the amount of the exemption, the tax that would otherwise
29 be due, and a statement that the tax loss shall be reimbursed by the
30 state as a homestead exemption.
31 Sec. 7. Section 77-3510, Reissue Revised Statutes of Nebraska, is
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1 amended to read:
2 77-3510 On or before February 1 of each year, the Tax Commissioner
3 shall prescribe forms to be used by all claimants for homestead exemption
4 or for transfer of homestead exemption. Such forms shall contain
5 provisions for the showing of all information which the Tax Commissioner
6 may deem necessary to (1) enable the county officials and the Tax
7 Commissioner to determine whether each claim for exemption under sections
8 77-3506, 77-3507, and 77-3508 and section 4 of this act should be allowed
9 and (2) enable the county assessor to determine whether each claim for
10 transfer of homestead exemption pursuant to section 77-3509.01 should be
11 allowed. It shall be the duty of the county assessor of each county in
12 this state to furnish such forms, upon request, to each person desiring
13 to make application for homestead exemption or for transfer of homestead
14 exemption. The forms so prescribed shall be used uniformly throughout the
15 state, and no application for exemption or for transfer of homestead
16 exemption shall be allowed unless the applicant uses the prescribed form
17 in making an application. The forms shall require the attachment of an
18 income statement for any applicant seeking an exemption under section
19 77-3507 or 77-3508 as prescribed by the Tax Commissioner fully accounting
20 for all household income. The Tax Commissioner shall provide to each
21 county assessor claim forms and address lists of applicants from the
22 prior year in the manner approved by the Tax Commissioner. The
23 application and information contained on any attachments to the
24 application shall be confidential and available to tax officials only.
25 Sec. 8. Section 77-3511, Revised Statutes Cumulative Supplement,
26 2024, is amended to read:
27 77-3511 The application for homestead exemption or for transfer of
28 homestead exemption shall be signed by the owner of the property who
29 qualifies for exemption under sections 77-3501 to 77-3529 and section 4
30 of this act unless the owner is an incompetent or unable to make such
31 application, in which case it shall be signed by the guardian. If an
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1 owner who in all respects qualifies for a homestead exemption under such
2 sections dies after January 1 and before the last day for filing an
3 application for a homestead exemption and before applying for a homestead
4 exemption, his or her personal representative may file the application
5 for exemption on or before the last day for filing an application for a
6 homestead exemption of that year if the surviving spouse of such owner
7 continues to occupy the homestead. Any exemption granted as a result of
8 such application signed by a personal representative shall be in effect
9 for only the year in which the owner died.
10 Sec. 9. Section 77-3512, Revised Statutes Cumulative Supplement,
11 2024, is amended to read:
12 77-3512 (1) It shall be the duty of each owner who wants a homestead
13 exemption under section 77-3506, 77-3507, or 77-3508 or section 4 of this
14 act to file an application therefor with the county assessor of the
15 county in which the homestead is located after February 1 and on or
16 before June 30 of each year, except that:
17 (a) The county board of the county in which the homestead is located
18 may, by majority vote, extend the deadline for an applicant to on or
19 before July 20. An extension shall not be granted to an applicant who
20 received an extension in the immediately preceding year;
21 (b) An owner may file a late application pursuant to section
22 77-3514.01 if he or she includes documentation of a medical condition
23 which impaired the owner's ability to file the application in a timely
24 manner;
25 (c) An owner may file a late application pursuant to section
26 77-3514.01 if he or she includes a copy of the death certificate of a
27 spouse who died during the year for which the exemption is requested;
28 (d) A veteran qualifying for a homestead exemption under subdivision
29 (2)(a) of section 77-3506 shall only be required to file an application
30 in every subsequent year evenly divisible by five; and
31 (e) If a veteran who has been granted a homestead exemption under
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1 subdivision (2)(a) of section 77-3506 dies during the five-year exemption
2 period, the surviving spouse of such veteran shall continue to receive
3 such exemption for the remainder of the five-year exemption period. After
4 the expiration of the five-year exemption period, the surviving spouse
5 shall be required to file for an exemption under subdivision (2)(b) of
6 section 77-3506 on an annual basis.
7 (2) Failure to file an application as required in subsection (1) of
8 this section shall constitute a waiver of the exemption for the year in
9 which the failure occurred.
10 Sec. 10. Section 77-3513, Revised Statutes Cumulative Supplement,
11 2024, is amended to read:
12 77-3513 The county assessor shall mail a notice on or before April 1
13 to claimants who are the owners of a homestead which was granted an
14 exemption under section 77-3506, 77-3507, or 77-3508 or section 4 of this
15 act and who are required to refile for such exemption in the current year
16 unless the claimant has already filed the application for the current
17 year or the county assessor has reason to believe there has been a change
18 of circumstances so that the claimant no longer qualifies. The notice
19 shall include the claimant's name, the application deadlines for the
20 current year, a list of documents that must be filed with the
21 application, and the county assessor's office address and telephone
22 number.
23 Sec. 11. Section 77-3514, Reissue Revised Statutes of Nebraska, is
24 amended to read:
25 77-3514 A claimant who is the owner of a homestead which has been
26 granted an exemption under section 77-3506, 77-3507, or 77-3508 or
27 section 4 of this act may notify the county assessor by August 15 of each
28 year of any change in the homestead exemption status occurring in the
29 preceding portion of the calendar year as a result of a transfer of the
30 homestead exemption pursuant to sections 77-3509.01 and 77-3509.02. If by
31 his or her failure to give such notice any property owner permits the
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1 allowance of the homestead exemption for any year after the homestead
2 exemption status of such property has changed, an amount equal to the
3 amount of the taxes lawfully due but not paid by reason of such unlawful
4 and improper allowance of homestead exemption, together with penalty and
5 interest on such total sum as provided by statute on delinquent ad
6 valorem taxes, shall be due and shall upon entry of the amount thereof on
7 the books of the county treasurer be a lien on such property while
8 unpaid. Such lien may be enforced in the manner provided for liens for
9 other delinquent taxes. Any person who has permitted the improper and
10 unlawful allowance of such homestead exemption on his or her property
11 shall, as an additional penalty, also forfeit his or her right to a
12 homestead exemption on any property in this state for the two succeeding
13 years.
14 Sec. 12. Section 77-3516, Reissue Revised Statutes of Nebraska, is
15 amended to read:
16 77-3516 The county assessor shall examine each application for
17 homestead exemption filed with him or her for an exemption pursuant to
18 section 77-3506, 77-3507, or 77-3508 or section 4 of this act and shall
19 determine, except for the income requirements, whether or not such
20 application should be approved or rejected. If the application is
21 approved, the county assessor shall mark the same approved and sign the
22 application. In case he or she finds that the exemption should not be
23 allowed by reason of not being in conformity to law, the county assessor
24 shall mark the application rejected, state thereon the reason for such
25 rejection, and sign the application. In any case when the county assessor
26 rejects an application for exemption, he or she shall notify the
27 applicant of such action by mailing writt