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LB 240

Change certain notice provisions under the Community Development Law

109th Legislature (2025-2026) Introduced by Mike Jacobson

LB 240 requires July 1 notice of tax-division provisions to county assessors for TIF projects, ensuring timely info and preventing undivided taxes in affected years.

Approved by Governor on March 11, 2025
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Bill Summary · LB 240

Summary — LB 240 (2025)

Title: Change certain notice provisions under the Community Development Law
Status: Approved by Governor (March 11, 2025) — became effective immediately (emergency clause)
Primary sponsor: Sen. Mike Jacobson
Statute amended: Neb. Rev. Stat. § 18‑2147

Purpose / intent

LB 240 modifies notice timing under the Community Development Law for redevelopment projects that divide ad valorem (property) taxes using Tax Increment Financing (TIF). The bill moves the required notice deadline earlier in the year to provide county assessors timely information about TIF tax‑division provisions.

Key provisions

  • Amends § 18‑2147 to require that the authority responsible for a redevelopment project send the notice of a provision dividing ad valorem taxes to the county assessor on or before July 1 of the year in which the tax‑division provision becomes effective.
  • Notices must be sent on forms prescribed by the Property Tax Administrator (existing requirement retained).
  • Consequence for failure to timely notify: for all taxable years affected by the missed notice, property taxes remain undivided and are paid into the funds of each public body receiving property tax revenue for the property in the redevelopment project. The redevelopment project valuation used for the remainder of the TIF period is the last certified valuation for the taxable year prior to the provision’s effective date (per existing statute).
  • Retains other statutory mechanics in § 18‑2147, including:
    • Valuation determination rules and protest rights (county assessor provides redevelopment project valuation; authority or owner may protest to county board of equalization within 30 days; board must decide within 30 days; appeals to the Tax Equalization and Review Commission).
    • Duration of tax‑division periods: up to 20 years for projects where >50% of area is declared extremely blighted; otherwise up to 15 years.
  • Includes a repealer clause and an emergency clause so the change takes immediate effect upon approval.

Who is affected

  • Redevelopment authorities (must meet the earlier July 1 notice deadline)
  • County assessors and treasurers (receive notices earlier in the tax year)
  • Property owners within redevelopment projects (receive valuation notices and may protest)
  • Local public bodies (cities, counties, school districts, etc.) that receive property tax revenue and whose receipts are affected by TIF allocations
  • Developers and projects that rely on TIF timing for financing

Legislative timeline & final action

  • Introduced: January 14, 2025; referred to Urban Affairs Committee; hearing Jan 28, 2025
  • Passed Legislature on Final Reading with Emergency Clause: March 6, 2025 (vote: 48‑0‑1)
  • Presented to Governor: March 6, 2025; Approved by Governor: March 11, 2025 (effective immediately)

Practical impact

By moving the statutory notice deadline to July 1, the law aims to ensure county assessors receive timely TIF notices earlier in the tax cycle, reducing the risk that late notices will cause taxes to remain undivided for affected years and providing clearer deadlines for authorities and property owners involved in TIF projects.

Compiled from official sources — confirm details with the bill’s official record.

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