This bill aims to regulate property tax increases in Nebraska by defining specific terms and establishing limits on how much property tax bills can rise from one year to the next. It introduces the concept of "allowable growth percentage," which is defined as the lesser of the inflation rate or three percent. The inflation rate is determined by the percentage change in the Consumer Price Index for All Urban Consumers over a twelve-month period ending on August 31 of the year in which the property tax bill is assessed. Additionally, the bill specifies that a property tax bill cannot exceed the previous year's amount by more than this allowable growth percentage.

However, the bill includes a provision that exempts property tax increases resulting from improvements made to the property in question. This means that if a property owner undertakes renovations or enhancements that increase the value of their property, the limitations on tax increases would not apply in those cases. Overall, the legislation seeks to provide more predictability and stability for property owners regarding their tax obligations.