LB211 LB211
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 211
Introduced by Blood, 3.
Read first time January 10, 2023
Committee: Revenue
1 A BILL FOR AN ACT relating to revenue and taxation; to amend section
2 77-2715.07, Revised Statutes Cumulative Supplement, 2022; to adopt
3 the Property Tax Circuit Breaker Act; to harmonize provisions; to
4 provide an operative date; and to repeal the original section.
5 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Sections 1 to 6 of this act shall be known and may be
2 cited as the Property Tax Circuit Breaker Act.
3 Sec. 2. The purpose of the Property Tax Circuit Breaker Act is to
4 provide tax relief through a refundable income tax credit for taxpayers
5 with limited income available to pay property taxes.
6 Sec. 3. For purposes of the Property Tax Circuit Breaker Act:
7 (1) Agricultural land and horticultural land has the same meaning as
8 in section 77-1359;
9 (2) Department means the Department of Revenue;
10 (3) Qualifying agricultural taxpayer means an individual who owns
11 agricultural land and horticultural land that is located in this state
12 and that has been used as part of a farming operation which has federal
13 adjusted gross income of less than three hundred fifty thousand dollars
14 in the most recently completed taxable year; and
15 (4) Qualifying residential taxpayer means an individual who owns or
16 rents his or her principal residence in this state and who has federal
17 adjusted gross income of less than one hundred thousand dollars for a
18 married filing jointly taxpayer or fifty thousand dollars for any other
19 taxpayer.
20 Sec. 4. (1) A qualifying agricultural taxpayer may apply to the
21 department for a refundable income tax credit under the Property Tax
22 Circuit Breaker Act from January 1 to April 15 of 2024 and 2025. The
23 application shall be made on a form developed by the department and shall
24 include:
25 (a) The address of the qualifying agricultural taxpayer’s
26 agricultural land and horticultural land;
27 (b) The amount of property taxes paid by the qualifying agricultural
28 taxpayer on the agricultural land and horticultural land during the most
29 recently completed taxable year;
30 (c) The federal adjusted gross income generated by the qualifying
31 agricultural taxpayer’s farming operation for the most recently completed
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1 taxable year; and
2 (d) Any other documentation required by the department.
3 (2) If the department determines that the qualifying agricultural
4 taxpayer qualifies for a tax credit under the act and that the
5 information in the application is correct, the department shall grant the
6 qualifying agricultural taxpayer a tax credit in an amount equal to the
7 amount of property taxes paid on the agricultural land and horticultural
8 land during the most recently completed taxable year minus seven percent
9 of the qualifying agricultural taxpayer's federal adjusted gross income
10 reported under subdivision (1)(c) of this section. The credit amount
11 shall not be less than zero. The department shall issue the qualifying
12 agricultural taxpayer a certification stating the amount of such credit
13 no later than December 31 of the year of application.
14 (3) The department may certify tax credits under this section of up
15 to seventy-four million dollars for each of the years 2024 and 2025. If
16 the total amount of tax credits calculated under subsection (2) of this
17 section for all applications received in any such year exceeds seventy-
18 four million dollars, the department shall certify tax credits in
19 proportionate percentages based upon the ratio of the amount of tax
20 credits requested in each application to the total amount of tax credits
21 requested in all applications so that the limitation in this subsection
22 is not exceeded.
23 (4) The qualifying agricultural taxpayer shall claim the tax credit
24 provided in this section by filing a form developed by the Tax
25 Commissioner and attaching the tax credit certification issued by the
26 department under this section. Such form and certification shall be filed
27 with the next income tax return filed by the qualifying agricultural
28 taxpayer after receiving the tax credit certification.
29 (5) Only one tax credit may be claimed under this section per parcel
30 of agricultural land and horticultural land.
31 Sec. 5. (1) A qualifying residential taxpayer may apply to the
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1 department for a refundable income tax credit under the Property Tax
2 Circuit Breaker Act from January 1 to April 15 of 2024 and 2025. The
3 application shall be made on a form developed by the department and shall
4 include:
5 (a) The address of the qualifying residential taxpayer’s principal
6 residence in this state;
7 (b)(i) If the qualifying residential taxpayer owns his or her
8 principal residence, the amount of property taxes paid by the qualifying
9 residential taxpayer on his or her principal residence during the most
10 recently completed taxable year; or
11 (ii) If the qualifying residential taxpayer rents his or her
12 principal residence, the amount of rent paid by the qualifying
13 residential taxpayer for the right to occupy his or her principal
14 residence during the most recently completed taxable year;
15 (c) The qualifying residential taxpayer's federal adjusted gross
16 income for the most recently completed taxable year;
17 (d) If the qualifying residential taxpayer owns his or her principal
18 residence, the assessed value of such residence used for determining the
19 property taxes paid during the most recently completed taxable year; and
20 (e) Any other documentation required by the department.
21 (2) If the department determines that the qualifying residential
22 taxpayer resided at the property described in the qualifying residential
23 taxpayer's application for at least six months of the most recently
24 completed taxable year, the department shall grant the qualifying
25 residential taxpayer a tax credit in an amount calculated pursuant to
26 this section and shall issue the qualifying residential taxpayer a
27 certification stating the amount of such credit no later than December 31
28 of the year of application.
29 (3)(a) For a qualifying residential taxpayer who paid property taxes
30 on his or her principal residence for the most recently completed taxable
31 year, the qualifying residential taxpayer shall be eligible for a credit,
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1 subject to the limits described in subsections (5) and (6) of this
2 section, equal to the amount by which the total amount of such property
3 taxes paid on the principal residence exceeds the sum of the amounts
4 calculated in subdivision (3)(b) of this section. For purposes of this
5 subdivision, the amount of property taxes paid on a qualifying
6 residential taxpayer’s principal residence shall not exceed the amount of
7 taxes paid on a residence with a taxable value equal to two hundred
8 percent of the average assessed value of single-family residential
9 property in the taxpayer's county of residence in the most recently
10 completed taxable year as determined under section 77-3506.02.
11 (b) The amounts to be added together for purposes of subdivision (3)
12 (a) of this section shall be determined from the following table:
13 For Married Filing For All Other
14 Jointly Taxpayers Taxpayers
15 (i) 1% of the taxpayer's $0-14,000 $0-7,000
16 federal adjusted gross
17 income that falls
18 within the following
19 income bracket:
20 (ii) 2% of the taxpayer's $14,001- $7,001-
21 federal adjusted gross 30,000 15,000
22 income that falls
23 within the following
24 income bracket:
25 (iii) 3% of the taxpayer's $30,001- $15,001-
26 federal adjusted gross 50,000 25,000
27 income that falls
28 within the following
29 income bracket:
30 (iv) 4% of the taxpayer's $50,001- $25,001-
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1 federal adjusted gross 75,000 37,500
2 income that falls
3 within the following
4 income bracket:
5 (v) 5% of the taxpayer's $75,001- $37,501-
6 federal adjusted gross 100,000 50,000
7 income that falls
8 within the following
9 income bracket:
10 (4)(a) For a qualifying residential taxpayer who paid rent for the
11 right to occupy his or her principal residence for the most recently
12 completed taxable year, the qualifying residential taxpayer shall be
13 eligible for a credit, subject to the limits described in subsections (5)
14 and (6) of this section, equal to the amount by which twenty percent of
15 the total amount of rent paid exceeds the sum of the amounts calculated
16 in subdivision (4)(b) of this section.
17 (b) The amounts to be added together for purposes of subdivision (4)
18 (a) of this section shall be determined from the following table:
19 For Married Filing For All Other
20 Jointly Taxpayers Taxpayers
21 (i) 1% of the taxpayer's $0-14,000 $0-7,000
22 federal adjusted gross
23 income that falls within
24 the following
25 income bracket:
26 (ii) 2% of the taxpayer's $14,001- $7,001-
27 federal adjusted gross 30,000 15,000
28 income that falls within
29 the following
30 income bracket:
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1 (iii) 3% of the taxpayer's $30,001- $15,001-
2 federal adjusted gross 50,000 25,000
3 income that falls within
4 the following
5 income bracket:
6 (iv) 4% of the taxpayer's $50,001- $25,001-
7 federal adjusted gross 75,000 37,500
8 income that falls within
9 the following
10 income bracket:
11 (v) 5% of the taxpayer's $75,001- $37,501-
12 federal adjusted gross 100,000 50,000
13 income that falls
14 within the following
15 income bracket:
16 (5) The credit allowed to a qualifying residential taxpayer under
17 this section for any taxable year shall not exceed the applicable amount
18 from the following table:
19 For Married Filing For All Other
20 Jointly Taxpayers Taxpayers
21 (a) $1,200 if the taxpayer's $0-14,000 $0-7,000
22 total federal adjusted
23 gross income for the
24 taxable year falls
25 into the following
26 income bracket:
27 (b) $900 if the taxpayer's $14,001- $7,001-
28 total federal adjusted 30,000 15,000
29 gross income for the
30 taxable year falls
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1 into the following
2 income bracket:
3 (c) $600 if the taxpayer's $30,001- $15,001-
4 total federal adjusted 50,000 25,000
5 gross income for the
6 taxable year falls
7 into the following
8 income bracket:
9 (d) $300 if the taxpayer's $50,001- $25,001-
10 total federal adjusted 100,000 50,000
11 gross income for the
12 taxable year falls
13 into the following
14 income bracket:
15 (6) The department may certify tax credits under this section of up
16 to one hundred twenty-six million dollars for each of the years 2024 and
17 2025. If the total amount of tax credits calculated under this section
18 for all applications received in any such year exceeds one hundred
19 twenty-six million dollars, the department shall certify tax credits in
20 proportionate percentages based upon the ratio of the amount of tax
21 credits requested in each application to the total amount of tax credits
22 requested in all applications so that the limitation in this subsection
23 is not exceeded.
24 (7) The qualifying residential taxpayer shall claim the tax credit
25 provided in this section by filing a form developed by the Tax
26 Commissioner and attaching the tax credit certification issued by the
27 department under this section. Such form and certification shall be filed
28 with the next income tax return filed by the qualifying residential
29 taxpayer after receiving the tax credit certification.
30 (8) Any qualifying residential taxpayer who rents property that is
31 owned by a tax-exempt charitable organization or that is exempt in any
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1 way from property taxation shall not be eligible to receive a tax credit
2 under this section.
3 (9) Only one tax credit may be claimed under this section per
4 residence.
5 Sec. 6. The department may adopt and promulgate rules and
6 regulations to carry out the Property Tax Circuit Breaker Act.
7 Sec. 7. Section 77-2715.07, Revised Statutes Cumulative Supplement,
8 2022, is amended to read:
9 77-2715.07 (1) There shall be allowed to qualified resident
10 individuals as a nonrefundable credit against the income tax imposed by
11 the Nebraska Revenue Act of 1967:
12 (a) A credit equal to the federal credit allowed under section 22 of
13 the Internal Revenue Code; and
14 (b) A credit for taxes paid to another state as provided in section
15 77-2730.
16 (2) There sh