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, as reported by the U.S. Department of Labor. Additionally, the bill defines "property tax bill" as the total amount of property taxes due for a parcel of real property as indicated on the property tax statement.

Under the proposed legislation, property tax bills for any parcel of real property cannot exceed the previous year's amount by more than the allowable growth percentage. However, this limitation does not apply if the increase in the property tax bill is a result of improvements made to the property. This bill seeks to provide more predictability and stability for property owners regarding their tax obligations.