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LB 209

Change provisions relating to homestead exemptions for certain veterans and a property tax exemption for certain facilities

109th Legislature (2025-2026) Introduced by Brad von Gillern

Expands veteran homestead exemption to include federal total disability ratings and limits a for-profit long-term care facility tax exemption to a percentage based on Medicaid occu

Approved by Governor on February 25, 2025
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Bill Summary · LB 209

Summary — LB 209 (2025)

Title: Change provisions relating to homestead exemptions for certain veterans and a property tax exemption for certain facilities
Status: Approved by Governor (signed February 25, 2025). Emergency clause included (effective on approval).
Introduced: January 14, 2025. Sponsor: Sen. R. Brad von Gillern. Committee: Revenue.

Purpose / Intent

LB 209 amends Nebraska tax law to (1) clarify and limit a statutory property-tax exemption tied to certain health care facilities and (2) expand one route by which a veteran may qualify for the homestead (property tax) exemption under state law. The bill also contains a repealer and an emergency clause so the changes take effect immediately on approval.

Key provisions

  1. Amendment to Neb. Rev. Stat. § 77-202 (property tax exemptions)

    • Clarifies that the exemption found in subdivision (1)(d)(i) applies to for‑profit skilled nursing facilities, nursing facilities, and assisted‑living facilities that provide housing for Medicaid beneficiaries.
    • For those for‑profit facilities the exemption amount is limited to a percentage of the property taxes otherwise due. That percentage equals the facility’s average percentage of occupied beds provided to Medicaid beneficiaries over the most recent three‑year period.
    • Explicitly states that this provision shall not be construed to modify, limit, or reduce property tax exemptions currently available to nonprofit skilled nursing, nursing, or assisted‑living facilities under the same statutory subdivision.

  2. Amendment to Neb. Rev. Stat. § 77-3506 (homestead exemption for veterans)

    • Adds an additional qualifying criterion: a veteran with a "total disability rating assignment under the federal regulations" qualifies for the homestead exemption (i.e., recognizes federal total disability rating as a pathway to full exemption eligibility).

  3. Repealer and Emergency Clause

    • The bill repeals the original versions of the amended sections and declares an emergency so the act is effective upon the Governor’s approval.

Who is affected

  • For‑profit skilled nursing, nursing, and assisted‑living facilities that house Medicaid beneficiaries: may receive a prorated property‑tax exemption tied to Medicaid bed occupancy.
  • Nonprofit facilities: explicitly preserved; existing nonprofit exemptions are not reduced or limited by this bill.
  • Disabled veterans (and potentially surviving spouses under existing law): veterans who have a federal total disability rating assignment may newly qualify (or have clarified eligibility) for the Nebraska homestead exemption.
  • Local taxing authorities and counties: may see changes in assessed exemptions and local property tax bases; administration will require application of the 3‑year Medicaid occupancy averaging rule.
  • Nebraska Department of Revenue: administration and interpretation of amended statutes.

Legislative and procedural timeline

  • Introduced: Jan 14, 2025. Revenue Committee hearing: Jan 23, 2025. Advanced by committee to General File.
  • Passed Final Reading (with emergency clause) Feb 21, 2025 — vote 47‑0‑2.
  • Presented to Governor Feb 21, 2025; approved Feb 25, 2025; effective immediately on approval.

Notes / Stakeholder positions

  • Proponents at the Revenue Committee hearing included the bill sponsor, Department of Revenue, and the Nebraska Health Care Association.
  • Nebraska Association of County Officials provided neutral testimony (written ADA accommodation testimony noted).
  • No recorded formal opponents at committee hearing.

This bill clarifies application of a limited property‑tax exemption for for‑profit long‑term care providers serving Medicaid residents while preserving nonprofit exemptions, and it broadens/clarifies qualifying criteria for veterans seeking the state homestead exemption by recognizing federal total disability ratings.

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

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