“It is a retroactive property tax increase”
State Sen. Steve Erdman of Bayard told the Nebraska Examiner.
Property Tax Increase
LINCOLN — Nebraska’s refundable income tax credit program for K-12 school property taxes is officially off the books, and new revisions will close the door for most taxpayers to get such relief on taxes paid in 2024.
Legislative Bill 34, passed 40-3 at the end of the Legislature’s summer special session on property taxes last month, revised the existing tax credit program first established in 2020 by LB 1107. The earlier process required taxpayers to apply for an income tax deduction the year after paying their property taxes. Tax statements are sent to taxpayers each December and are typically paid in two installments over the following year.
State Sen. Steve Erdman of Bayard, center. To his right, State Sen. Mike McDonnell of Omaha reaches out to State Sen. Tom Brewer of north-central Nebraska. July 30, 2024. (Zach Wendling/Nebraska Examiner)
Now, the LB 34 credit will appear first on that property tax statement. While the changes make the process of returning funds to taxpayers upfront and automatic, some officials have discovered what they say will hurt some taxpayers because of the legislation.