As valuation notices arrive in mailboxes across Nebraska, many property owners are asking the same question: If my valuation increased, does that mean my property taxes will increase as well? The answer is, no, not necessarily. Your property tax bill is based on two things: the assessed value of your property times the tax rate, or levy, which is set by locally elected taxing authorities. Understanding how those two factors work together can help make sense of both your valuation notice and tax bill.

The first step is the assessment process. Locally elected county assessors determine the value of property as of Jan. 1 each year, using market data and standardized appraisal methods. Their job is to ensure properties are valued fairly and consistently. If you believe your valuation does not accurately reflect your property's value or is inconsistent with similar properties, Nebraska's protest process provides an opportunity to request a review. Valuation notices are mailed by June 1, and protests must be filed with your county clerk by June 30.

The second step is the levy process. Counties, school districts, municipalities, natural resources districts, fire districts, educational service units, and other political subdivision boards, which are all locally elected, establish budgets to fund the services they provide. Those budgets determine the levy rates that are applied to assessed values. The levy rate is assessed per every $100 of assessed value, so if total values go up, you should expect local boards to conversely lower the levy rate to control the growth of the tax ask (how much money they are asking from you, the taxpayer).

While property values affect your share of the tax burden, the levy rates adopted by local governments ultimately determine your final tax bill. Levies set taxes, not assessments, and locally elected boards set the levy. The formula is: Assessed valuation divided by 100, times the levy, minus state credits = your property tax bill.

While the work is certainly not done, the Legislature has taken significant steps to provide property tax relief as well as improve transparency for taxpayers.

During the 2024 special session, LB 34 moved property tax relief directly onto property tax statements through the School District Property Tax Relief Credit, allowing taxpayers to see the benefit on their bill rather than waiting to claim it through their income taxes. The legislation also added an additional $200 million to the relief program, established limits on future growth in property tax collections by many local governments, and built upon the state's ongoing investment in K-12 education through the Education Future Fund. In addition, the state provided significant property tax reform by taking the bulk of the cost for Community Colleges off of your property tax bill and putting it on the state’s bill, which is paid primarily out of sales and income tax. All of this reform/relief now totals approximately $1.7 billion.

This year, the Legislature continued those efforts through AM2651 to LB 803. The measure increases transparency by providing property owners with a side-by-side comparison of taxes levied in the previous year and the potential impact of current valuations, while also moving 'pink postcard' hearings from September to July so taxpayers can provide input earlier in the budgeting process. Political subdivisions seeking to increase property tax collections above the prior year's amount must also hold a public hearing and approve the increase by a two-thirds vote.

While property taxes remain a significant concern for many Nebraska families, understanding how assessments, levies and taxpayer relief programs work together and the role of each elected official can help property owners make informed decisions. Reviewing your valuation notice, understanding the protest process, and participating in local budget discussions are important ways to ensure your voice is heard, your property is assessed fairly and your tax dollars are budgeted and spent wisely.

One of the most vital aspects of my role in the Legislature is connecting with constituents to better understand the priorities of our communities and represent them in Lincoln. Your input, concerns, and questions are essential in shaping the work I do. Whether you have inquiries regarding your valuation notice, the property tax protest process, or any other matter, I encourage you to reach out to my office.

Respectfully, Senator Tanya Storer