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FOR IMMEDIATE RELEASE

FOR INFORMATION, CONTACT:
Ruth A. Sorensen, Property Tax Administrator
Property Assessment Division
402-471-5962

Real Property Tax Credit (non-agland)
and Agricultural Land Tax Credit for Tax Year 2017

SEPTEMBER 14, 2017 (LINCOLN, NEB.) — The State of Nebraska is providing property owners tax relief of a portion of real property taxes levied in 2017. The Property Tax Credit Act (Act) provides a real property tax credit based upon the valuation of each parcel of real property compared to the valuation of all real property in the state. The total amount of credit available for statewide distribution in 2017 is $224 million.

The Act, as amended by Neb. Laws 2016, LB 958, requires allocation of the credit monies as if agricultural and horticultural land, and agricultural and horticultural land receiving special valuation, were valued at 120% of its taxable value. For all real property other than agricultural land, the credit allocation valuation means 100% of the taxable value.
Beginning 2017, there are two rates of credit. One rate is applicable to all real property other than land classified as agricultural and horticultural land. The second tax credit rate is only applicable to the portion of the real property parcel classified as agricultural and horticultural land and agricultural and horticultural land receiving special valuation. This is referred to as the “agland tax credit.”

Real property (non-agland) tax credit rate is $87.95 per $100,000 of taxable valuation.

Agland tax credit rate is $105.56 per $100,000 of taxable valuation.


Allocation of the total credit money of $224 million was determined as follows:

  • Total real property credit allocation value 254,665,934,402.
  • Real property credit allocation value 135,316,352,585 or 53.13% = $119,011,200
  • Agland credit allocation value 119,349,581,817 or 46.87% = $104,988,800

Real property (non-agland) rate of credit was determined as follows:

  • $119,011,200 divided by real property (non-agland) value 135,316,352,585 = .0008795
    or $87.95 per 100,000 of taxable real property (non-agland) value.

Agland rate of credit was determined as follows:

  • $104,988,800 divided by taxable agland value 99,457,984,847 = .0010556
    or $105.56 per 100,000 of taxable agland value.

The real property tax credit rate is multiplied by the parcel’s taxable value (non-agland) and the agland rate tax credit rate is multiplied by the taxable value of land classified as agricultural and horticultural land and agricultural and horticultural land receiving special value.

The real property tax credit is not a reduction in the levy or tax rate. The rates of credit have no impact on the property tax rates set by political subdivisions. The real property tax credit will be shown on tax statements as a credit after the full taxes levied. The property tax credit will be reflected as a reduction in real property tax due on the 2017 tax statements.

The amounts of real property tax credit for 2017 are being certified to the State Treasurer and the counties today. Attached are two documents that show the amount of tax credits certified for each county and the real property value eligible for the property tax credit in each county.

Real property tax credit information can be found at revenue.nebraska.gov/PAD, see Property Assessment
Directive 16-2.


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