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LB 501

Change provisions relating to the assessment of real property that suffers significant property damage

109th Legislature (2025-2026) Introduced by Glen Meyer

LB 501 allows property tax reductions for significant property damage (20% threshold) by updating language, defining damage, and clarifying local officials’ reporting and adjustmen

Approved by Governor on April 7, 2025
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Bill Summary · LB 501

Summary — LB 501 (2025)

Title: Change provisions relating to the assessment of real property that suffers significant property damage
Status: Approved by Governor (April 7, 2025). Emergency clause included (effective on approval).
Introduced: January 21, 2025. Sponsor: Sen. Glen Meyer.

Purpose / Intent

LB 501 clarifies and updates Nebraska law governing reassessment of real property that suffers significant damage. It replaces the term “destroyed” with “damaged,” restates the statutory definitions and administrative procedures, and clarifies local officials’ roles in processing damage reports and adjusting assessments. The statute preserves a damages threshold for relief and excludes owner-caused damage.

Key provisions and changes

  • Terminology: Replaces “destroyed” with “damaged” in sections 77-1301, 77-1307, 77-1308, 77-1309 and 77-1725.01 to broaden scope beyond only “destroyed” properties.
  • Definition of damaged/destroyed real property (77-1307):
    • Applies to property suffering significant property damage occurring on or after Jan 1, 2019 and before July 1 of the assessment year.
    • Excludes property where the owner caused the damage.
  • Definition of “significant property damage” (77-1307(2)(c)):
    • Damage to an improvement exceeding 20% of the improvement’s assessed value (current tax year), or
    • Damage to land exceeding 20% of the parcel’s assessed land value, or
    • Damage exceeding 20% of total assessed value where the property is in a Governor-declared disaster area and a housing or health inspector has found the property uninhabitable/unlivable.
  • Reporting and review process (77-1308):
    • Property owner must file a prescribed report with the county assessor and county clerk on or before July 15 of the assessment year.
    • County assessor must inspect reported properties and submit a comprehensive report to the county board of equalization on or before July 20.
    • Special mobile-home reporting and accelerated-tax refund procedures are harmonized with section 77-1725.01 and related provisions.
  • Board action and appeals (77-1309):
    • County board of equalization adjusts assessed value to the value on the date of damage for the current assessment year only.
    • Board may consider such cases between June 1 and July 25 (or by Aug 10 if board has extended protest hearing deadline).
    • Notice, protest, decision timelines and right to appeal to the Tax Equalization and Review Commission (within 30 days) are specified.
  • Harmonization: Conforming edits in 77-1301 and 77-1725.01; repeal of originals; emergency clause inserted.

Who is affected

  • Property owners whose property suffers qualifying damage (except owner-caused damage), including owners of mobile homes in certain circumstances.
  • County officials: county assessors, county clerks, and county boards of equalization (new/clarified duties and deadlines).
  • Local taxing jurisdictions could experience modest, temporary reductions in taxable value for properties successfully adjusted.

Administrative & timing highlights

  • Owner filing deadline: July 15 (assessment year).
  • County assessor submits report to county board: by July 20.
  • County board consideration window: June 1–July 25 (or to Aug 10 if extended).
  • Protest filing: within 30 days after mailing of BOE notice; BOE decides within 30 days of protest; county clerk mails decision within 7 days.
  • Effective immediately upon Governor’s approval (emergency clause).
    Legislative timeline: introduced Jan 21, 2025; Revenue Committee hearing Feb 5, 2025; passed Final Reading with emergency clause (vote 47–0–2) and presented to Governor April 3, 2025; approved by Governor April 7, 2025.

Potential impact

  • Provides clearer statutory basis for assessment reductions after property damage (broadening beyond the narrower “destroyed” language).
  • Maintains a 20% damage threshold for relief and preserves procedural safeguards (notice, protest, appeal).
  • Clarifies county-level roles, which may streamline processing and reduce litigation over procedural ambiguity. Local property tax revenue may be reduced for affected parcels for the current assessment year only.

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

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