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2021 2021
LEGISLATIVE BILL 2
Approved by the Governor May 24, 2021
Introduced by Briese, 41; Murman, 38.
A BILL FOR AN ACT relating to property taxes; to amend sections 77-201 and
77-5023, Reissue Revised Statutes of Nebraska; to change the valuation of
agricultural land and horticultural land for purposes of certain school district taxes; to harmonize provisions; to provide an operative date; and to repeal the original sections.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 77-201, Reissue Revised Statutes of Nebraska, is amended to read:
77-201 (1) Except as provided in subsections (2) through (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 the operative date of this act, 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 value 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 the operative date of this act,
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) 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. Section 77-5023, Reissue Revised Statutes of Nebraska, is amended to read:
77-5023 (1) Pursuant to section 77-5022, the commission shall have the power to increase or decrease the value of a class or subclass of real property in any county or taxing authority or of real property valued by the state so
that all classes or subclasses of real property in all counties fall within an
acceptable range.
(2) An acceptable range is the percentage of variation from a standard for valuation as measured by an established indicator of central tendency of
assessment. Acceptable ranges are: (a) For agricultural land and horticultural land as defined in section 77-1359, sixty-nine to seventy-five percent of
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 the operative date of this act, the acceptable range is forty-four to fifty percent of actual value; (b) for lands receiving special valuation, sixty-nine to
seventy-five percent of special valuation as defined in section 77-1343, except that for school district taxes levied to pay the principal and interest on
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bonds that are approved by a vote of the people on or after the operative date of this act, the acceptable range is forty-four to fifty percent of special valuation as defined in section 77-1343; and (c) for all other real property,
ninety-two to one hundred percent of actual value.
(3) Any increase or decrease shall cause the level of value determined by
the commission to be at the midpoint of the applicable acceptable range.
(4) Any decrease or increase to a subclass of property shall also cause the level of value determined by the commission for the class from which the subclass is drawn to be within the applicable acceptable range.
(5) Whether or not the level of value determined by the commission falls within an acceptable range or at the midpoint of an acceptable range may be
determined to a reasonable degree of certainty relying upon generally accepted mass appraisal techniques.
Sec. 3. This act becomes operative on January 1, 2022.
Sec. 4. Original sections 77-201 and 77-5023, Reissue Revised Statutes of
Nebraska, are repealed.
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Statutes affected:
Introduced: 77-201, 77-5023
Final Reading: 77-201, 77-5023
Slip Law: 77-201, 77-5023