Nebraska Property Tax Information
Nebraska property owners don’t have to worry about being subjected to a state property tax, but they are subject to a local property tax. The Nebraska state government prohibited the state from levying a property tax during a petition back in 1966. All property tax in the state is levied on real estate and most personal property based on its actual or real market value.
There are a few exemptions when it comes to commercial and industrial equipment, though, that business owners in those types of industries they are applicable to should ensure they take advantage of.
Classified Property Tax System
Nebraska has a classified property tax system that treats agricultural property differently than other classes of property. Traditionally, agricultural property was mostly assessed at 80 percent of its actual value in the state. However, in 1990, a constitutional amendment was approved by voters that distinguished agricultural land as a separate class of property which must be assessed uniformly and proportionately within that class, but not in comparison with other classes of properties.
Commercial and Industrial Property
Generally, intangible property is exempt from taxation in Nebraska since its real market value can’t accurately be measured. Business and farm inventories as well as tangible property that produces income is subject to property taxation, though. The way that property is taxed is by the tax rate and the assessed value of the property. Nebraska does allow for some exemptions under the Employment and Investment Growth Act in enacted in 1987, which was later replaced by the Nebraska Advantage Act in 2006. Basically, property that is used to help provide jobs and increase industry in the state is sometimes eligible for special exemptions or credits if it meets all the conditions set forth in the act.
Property Tax Valuation Method
Nebraska’s valuation method that it uses to assess real property is a bit different than that of some other states. Its assessed values are based on market values for all classes of real property. This method is different from that of other agriculturally-oriented states that usually apply use value standards rather than market value standards when valuing property. With use valuation, land is valued at its current agricultural use rather than at its highest potential, which is usually much higher in urban areas. Although Nebraska usually requires valuation based on the market value of all classes, an exception is permitted for agricultural land and equipment.
Business owners who believe that their commercial and industrial property was valued at a higher assessment than it should have been can appeal their property assessments. A company like Assessment Technologies can assist property owners in proving that their properties were valued at more than they should have been. They can also help provide documentation of similar properties, market value data and other economical data to support their claims.
Of course, Assessment Technologies experts will also ensure that their clients are taking advantage of all exemptions and credits that they are eligible for. Assessment Technologies can help clients ensure that they get the best deals on their taxes.
Nebraska Property Tax Resource: revenue.nebraska.gov/PAD/