LB644 LB644
2021 2021
LEGISLATIVE BILL 644
Approved by the Governor May 24, 2021
Introduced by Hansen, B., 16; McCollister, 20; Vargas, 7.
A BILL FOR AN ACT relating to revenue and taxation; to amend sections 14-1821,
23-909, 23-3552, 31-333, 31-513, 31-739, 39-1621, 46-543, 77-1601,
77-1776, 79-1085, and 79-1225, Reissue Revised Statutes of Nebraska, and sections 13-508, 13-513, 18-822, 18-2107, 35-509, 77-1601.02, 77-1736.06,
77-3443, 79-1023, and 79-1084, Revised Statutes Cumulative Supplement,
2020; to adopt the Property Tax Request Act; to change certain dates relating to tax levies; to change provisions relating to property tax refunds and property tax requests; 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. Sections 1 to 5 of this act shall be known and may be cited as
the Property Tax Request Act.
Sec. 2. For purposes of the Property Tax Request Act:
(1) Allowable growth percentage means a percentage equal to the sum of (a)
two percent plus (b) the political subdivision's real growth percentage;
(2) Excess value means an amount equal to the assessed value of the real property included in a tax increment financing project minus the redevelopment project valuation for such real property;
(3) Property tax request means the total amount of property taxes requested to be raised for a political subdivision through the levy imposed pursuant to section 77-1601;
(4) Real growth percentage means the percentage obtained by dividing (a)
the political subdivision's real growth value by (b) the political subdivision's total real property valuation from the prior year;
(5) Real growth value means and includes:
(a) The increase in a political subdivision's real property valuation from the prior year to the current year due to (i) improvements to real property as
a result of new construction and additions to existing buildings, (ii) any other improvements to real property which increase the value of such property,
(iii) annexation of real property by the political subdivision, and (iv) a change in the use of real property; and
(b) The annual increase in the excess value for any tax increment financing project located in the political subdivision;
(6) Redevelopment project valuation has the same meaning as in section
18-2103; and
(7) Tax increment financing project means a redevelopment project as
defined in section 18-2103 that is financed through the division of taxes as
provided in section 18-2147.
Sec. 3. Section 77-1601.02, Revised Statutes Cumulative Supplement, 2020,
is amended to read:
77-1601.02 (1) If the annual assessment of property would result in an increase in the total property taxes levied by a county, city, village municipality, school district, learning community, sanitary and improvement district, natural resources district, educational service unit, or community college, as determined using the previous year's rate of levy, such political subdivision's property tax request for the current year shall be no more than its property tax request in the prior year, and the political subdivision's rate of levy for the current year shall be decreased accordingly when such rate is set by the county board of equalization pursuant to section 77-1601. The governing body of the political subdivision shall pass a resolution or
ordinance to set the amount of its property tax request after holding the public hearing required in subsection (3) of this section. If the governing body of a political subdivision seeks to set its property tax request at an amount that exceeds its property tax request in the prior year, it may do so after holding the public hearing required in subsection (3) of this section and by passing a resolution or ordinance that complies with subsection (4) of this section. If any county, city, school district, or community college seeks to
increase its property tax request by more than the allowable growth percentage,
such political subdivision shall comply with the requirements of section 4 of this act in lieu of the requirements in subsections (3) and (4) of this section.
(2) If the annual assessment of property would result in no change or a decrease in the total property taxes levied by a county, city, village municipality, school district, learning community, sanitary and improvement district, natural resources district, educational service unit, or community college, as determined using the previous year's rate of levy, such political subdivision's property tax request for the current year shall be no more than its property tax request in the prior year, and the political subdivision's rate of levy for the current year shall be adjusted accordingly when such rate is set by the county board of equalization pursuant to section 77-1601. The governing body of the political subdivision shall pass a resolution or
ordinance to set the amount of its property tax request after holding the
-1-
LB644 LB644
2021 2021
public hearing required in subsection (3) of this section. If the governing body of a political subdivision seeks to set its property tax request at an amount that exceeds its property tax request in the prior year, it may do so after holding the public hearing required in subsection (3) of this section and by passing a resolution or ordinance that complies with subsection (4) of this section. If any county, city, school district, or community college seeks to
increase its property tax request by more than the allowable growth percentage,
such political subdivision shall comply with the requirements of section 4 of this act in lieu of the requirements in subsections (3) and (4) of this section.
(3) The resolution or ordinance required under this section shall only be
passed after a special public hearing called for such purpose is held and after notice is published in a newspaper of general circulation in the area of the political subdivision at least four calendar days prior to the hearing. For purposes of such notice, the four calendar days shall include the day of
publication but not the day of hearing. If the political subdivision's total operating budget, not including reserves, does not exceed ten thousand dollars per year or twenty thousand dollars per biennial period, the notice may be
posted at the governing body's principal headquarters. The hearing notice shall contain the following information: The certified taxable valuation under section 13-509 for the prior year, the certified taxable valuation under section 13-509 for the current year, and the percentage increase or decrease in
such valuations from the prior year to the current year; the dollar amount of
the prior year's tax request and the property tax rate that was necessary to
fund that tax request; the property tax rate that would be necessary to fund last year's tax request if applied to the current year's valuation; the proposed dollar amount of the tax request for the current year and the property tax rate that will be necessary to fund that tax request; the percentage increase or decrease in the property tax rate from the prior year to the current year; and the percentage increase or decrease in the total operating budget from the prior year to the current year.
(4) Any resolution or ordinance setting a political subdivision's property tax request under this section at an amount that exceeds the political subdivision's property tax request in the prior year shall include, but not be
limited to, the following information:
(a) The name of the political subdivision;
(b) The amount of the property tax request;
(c) The following statements:
(i) The total assessed value of property differs from last year's total assessed value by ..... percent;
(ii) The tax rate which would levy the same amount of property taxes as
last year, when multiplied by the new total assessed value of property, would be $..... per $100 of assessed value;
(iii) The (name of political subdivision) proposes to adopt a property tax request that will cause its tax rate to be $..... per $100 of assessed value;
and
(iv) Based on the proposed property tax request and changes in other revenue, the total operating budget of (name of political subdivision) will exceed last year's by ..... percent; and
(d) The record vote of the governing body in passing such resolution or
ordinance.
(5) Any resolution or ordinance setting a property tax request under this section shall be certified and forwarded to the county clerk on or before October 15 13 of the year for which the tax request is to apply.
(6) Any levy which is not in compliance with this section and section
77-1601 shall be construed as an unauthorized levy under section 77-1606.
Sec. 4. (1) For purposes of this section, political subdivision means any county, city, school district, or community college.
(2) If any political subdivision seeks to increase its property tax request by more than the allowable growth percentage, such political subdivision may do so if:
(a) A public hearing is held and notice of such hearing is provided in
compliance with subsection (3) of this section; and
(b) The governing body of such political subdivision passes a resolution or an ordinance that complies with subsection (4) of this section.
(3)(a) Each political subdivision within a county that seeks to increase its property tax request by more than the allowable growth percentage shall participate in a joint public hearing. Each such political subdivision shall designate one representative to attend the joint public hearing on behalf of
the political subdivision. If a political subdivision includes area in more than one county, the political subdivision shall be deemed to be within the county in which the political subdivision's principal headquarters are located.
At such hearing, there shall be no items on the agenda other than discussion on
each political subdivision's intent to increase its property tax request by
more than the allowable growth percentage.
(b) The joint public hearing shall be held on or after September 17 and prior to September 29 and before any of the participating political subdivisions file their adopted budget statement pursuant to section 13-508.
(c) The joint public hearing shall be held after 6 p.m. local time on the relevant date.
(d) At the joint public hearing, the representative of each political subdivision shall give a brief presentation on the political subdivision's intent to increase its property tax request by more than the allowable growth
-2-
LB644 LB644
2021 2021
percentage and the effect of such request on the political subdivision's budget. The presentation shall include:
(i) The name of the political subdivision;
(ii) The amount of the property tax request; and
(iii) The following statements:
(A) The total assessed value of property differs from last year's total assessed value by ..... percent;
(B) The tax rate which would levy the same amount of property taxes as
last year, when multiplied by the new total assessed value of property, would be $..... per $100 of assessed value;
(C) The (name of political subdivision) proposes to adopt a property tax request that will cause its tax rate to be $..... per $100 of assessed value;
(D) Based on the proposed property tax request and changes in other revenue, the total operating budget of (name of political subdivision) will exceed last year's by ..... percent; and
(E) To obtain more information regarding the increase in the property tax request, citizens may contact the (name of political subdivision) at (telephone number and email address of political subdivision).
(e) Any member of the public shall be allowed to speak at the joint public hearing and shall be given a reasonable amount of time to do so.
(f) Notice of the joint public hearing shall be provided:
(i) By sending a postcard to all affected property taxpayers. The postcard shall be sent to the name and address to which the property tax statement is
mailed;
(ii) By posting notice of the hearing on the home page of the relevant county's web site, except that this requirement shall only apply if the county has a population of more than twenty-five thousand inhabitants; and
(iii) By publishing notice of the hearing in a legal newspaper in or of
general circulation in the relevant county.
(g) Each political subdivision that participates in the joint public hearing shall send the information prescribed in subdivision (3)(h) of this section to the county clerk by September 5. The county clerk shall transmit the information to the county assessor no later than September 10. The county clerk shall notify each participating political subdivision of the date, time, and location of the joint public hearing. The county assessor shall mail the postcards required in this subsection. Such postcards shall be mailed at least seven calendar days before the joint public hearing. The cost of creating and mailing the postcards, including staff time, materials, and postage, shall be
divided among the political subdivisions participating in the joint public hearing.
(h) The postcard sent under this subsection and the notice posted on the county's web site, if required under subdivision (3)(f)(ii) of this section,
and published in the newspaper shall include the date, time, and location for the joint public hearing, a listing of and telephone number for each political subdivision that will be participating in the joint public hearing, and the amount of each participating political subdivision's property tax request. The postcard shall also contain the following information:
(i) The following words in capitalized type at the top of the postcard:
NOTICE OF PROPOSED TAX INCREASE;
(ii) The name of the county that will hold the joint public hearing, which shall appear directly underneath the capitalized words described in subdivision
(3)(h)(i) of this section;
(iii) The following statement: The following political subdivisions are proposing a revenue increase as a result of property taxes in (insert current tax year). This notice contains estimates of the tax on your property and the proposed tax increase on your property as a result of this revenue increase.
These estimates are calculated on the basis of the proposed (insert current tax year) data. The actual tax on your property and tax increase on your property may vary from these estimates.
(iv) The parcel number for the property;
(v) The name of the property owner and the address of the property;
(vi) The property's assessed value in the previous tax year;
(vii) The amount of property taxes due in the previous tax year for each participating political subdivision;
(viii) The property's assessed value for the current tax year;
(ix) The amount of property taxes due for the current tax year for each participating political subdivision;
(x) The change in the amount of property taxes due for each participating political subdivision from the previous tax year to the current tax year; and
(xi) The following statement: To obtain more information regarding the tax increase, citizens may contact the political subdivision at the telephone number provided in this notice.
(4) After the joint public hearing required in subsection (3) of this section, the governing body of each participating political subdivision shall pass an ordinance or resolution to set such political subdivision's property tax request. If the political subdivision is increasing its property tax request over the amount from the prior year, including any increase in excess of the allowable growth percentage, then such ordinance or resolution shall include, but not be limited to, the following information:
(a) The name of the political subdivision;
(b) The amount of the property tax request;
(c) The following statements:
(i) The total assessed value of property differs from last year's total
-3-
LB644 LB644
2021 2021
assessed value by ..... percent;
(ii) The tax rate which would levy the same amount of property taxes as
last year, when multiplied by the new total assessed value of property, would be $..... per $100 of assessed value;
(iii) The (name of political subdivision) proposes to adopt a property tax request that will cause its tax rate to be $..... per $100 of assessed value;
and
(iv) Based on the proposed property tax request and changes in other revenue, the total operating budget of (name of political subdivision) will exceed last year's by ..... percent; and
(d) The record vote of the governing body in passing such resolution or
ordinance.
(5) Any resolution or ordinance setting a property tax request under this section shall be certified and forwarded to the county clerk on or before October 15 of the year for which the tax request is to apply.
(6) The county clerk, or his or her designee, shall prepare a report which shall include (a) the names of the representatives of the political subdivisions participating in the joint public hearing and (b) the name and address of each individual who spoke at the joint public hearing, unless the address requirement is waived to protect the security of the individual, and the name of any organization represented by each such individual. Such report shall be delivered to the political subdivisions participating in the joint public hearing within ten days after such hearing.
Sec. 5. (1) Except as provided in subsection (2) of this section, any levy which is not in compliance with the Property Tax Request Act and section
77-1601 shall be construed as an unauthorized levy under section 77-1606.
(2) An inadvertent failure to comply with the Property Tax Request Act shall not invalidate a political subdivision's property tax request or
constitute an unauthorized levy under section 77-1606. The failure of a taxpayer to receive a postcard as required under the act shall not invalidate a political subdivision's property tax request or constitute an unauthorized levy under section 77-1606.
Sec. 6. Section 13-508, Revised Statutes Cum