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LB 399

Change provisions relating to property tax rates and qualifications for certain distributions under the Mutual Finance Assistance Act

109th Legislature (2025-2026) Introduced by Woody Wordekemper

Lowers the outside-city population threshold from 80% to 60% for rural/suburban fire districts and mutual finance orgs to access Mutual Finance Assistance Fund distributions.

Approved by Governor on May 20, 2025
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Bill Summary · LB 399

Summary — LB 399 (2025)

Title: Change provisions relating to property tax rates and qualifications for certain distributions under the Mutual Finance Assistance Act
Sponsor: Sen. Dave Wordekemper
Status: Approved by Governor (May 20, 2025). Operative date: October 1, 2025.

Main purpose

LB 399 amends the Mutual Finance Assistance Act to (1) lower the population-based eligibility threshold for certain rural/suburban fire protection districts and mutual finance organizations to receive distributions from the Mutual Finance Assistance Fund and (2) remove obsolete statutory language related to prior legislation. The law also restates requirements for mutual finance organization property tax agreements.

Key provisions

  • Lowers the assumed-county-population threshold for eligibility:
    • For a rural or suburban fire protection district (and for mutual finance organizations), the required share of the assumed county population living outside the limits of any city of the first, primary, or metropolitan class is reduced from at least 80% to at least 60%.
    • Existing alternative threshold of an assumed population of 30,000 (within district/organization boundaries) remains unchanged.
  • Clarifies mutual finance organization agreement and levy rules (section 35-1204):
    • Mutual finance organizations formed under the Interlocal Cooperation Act or Joint Public Agency Act must have a 3-year agreement.
    • Each member must levy the same agreed-upon property tax rate within its boundaries for one of the three years; members may levy that rate in different years.
    • Members must not exceed that agreed rate in the other years.
    • Levies for bonded indebtedness and lease-purchase contracts in existence on or after July 1, 1998, are excluded from the agreed-upon rate.
  • Eliminates (or updates) obsolete statutory language related to prior changes (notably references to LB 1130 / 2020), and repeals the original sections being replaced.
  • Operative date: October 1, 2025.

Who is affected

  • Primary beneficiaries: rural and suburban fire protection districts and mutual finance organizations that previously did not meet the 80% assumed-county-population threshold but meet the new 60% threshold — these entities become newly eligible for distributions from the Mutual Finance Assistance Fund (distributions made under section 35-1206).
  • Indirectly affected: counties, cities of the first/primary/metropolitan class (thresholds are calculated relative to populations outside these cities), and the state fund administration.

Procedural timeline & votes

  • Introduced: Jan 17, 2025
  • Revenue Committee hearing: Feb 20, 2025 (advanced to General File)
  • Final Reading Passed: May 14, 2025 (49–0–0)
  • Presented to Governor: May 14, 2025
  • Approved by Governor: May 20, 2025
  • Operative: October 1, 2025

Stakeholders / testimony

  • Proponents included Millard and Papillion Fire Districts, Nebraska State Volunteer Firefighters Association, and Nebraska Fire Chiefs Association. No recorded opponents at committee hearing.

Likely impact

  • Expands eligibility for Mutual Finance Assistance Fund distributions to additional rural/suburban fire districts and mutual finance organizations. This could increase the number of recipients and total distributions from the Fund; the bill text does not include a fiscal estimate.

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

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