WeVote
Log In

Bill

BH

Bill

LB 575

Change provisions relating to the Property Tax Request Act and property tax levy limits

109th Legislature (2025-2026) Introduced by Bob Hallstrom

LB575 limits property tax levy increases to last year's revenue, requires a 2/3 vote to exceed, and mandates county-wide joint hearings with notices for residents.

Revenue AM1977 filed
2
WeVote Research Nonpartisan
Bill Summary · LB 575

Summary of LB 575 (Nebraska)

Overview and purpose

LB 575, introduced January 22, 2025 by Senator Bob Hallstrom and assigned to the Revenue Committee, proposes changes to the Property Tax Request Act and to statutory property tax levy limits. The bill aims to constrain how much a political subdivision can increase its property tax request and to tighten the procedures for public hearings when increases exceed the allowable growth percentage. An emergency clause is included.

Main intent

  • Limit levy increases: A political subdivision’s levy would be capped at the amount needed to raise the same property tax revenue as the previous tax year. If a subdivision seeks to exceed this limit, it would require a two-thirds majority vote from its governing body to approve the higher levy.
  • Align with growth-control framework: The bill adjusts how a levy increase interacts with the existing allowable growth framework found in the Property Tax Growth and Limitation Act and related provisions.

Key provisions and changes

  • Amended sections: 77-1633 and 77-3442 (Revised Statutes Cumulative Supplement, 2024), including repeals of the original sections and declaration of an emergency.
  • Levy limit standard:
    • A subdivision may increase its property tax request beyond the allowable growth percentage only if the governing body approves by a two-thirds vote (where applicable).
    • The levy limit would reflect the amount necessary to raise last year’s level of property tax revenue.
  • Public hearing requirements (joint hearings for county-based increases):
    • If multiple subdivisions within a county seek to increase above the allowable growth, the county must conduct a joint public hearing after 6:00 p.m. local time.
    • A designated representative from each participating subdivision must attend; the joint hearing organizers are the county clerk or designee.
    • Notice and participation: At least one elected official from each subdivision must attend; a joint hearing is not considered a formal Open Meetings Act meeting for purposes of quorum rules.
    • Hearing timing window: The joint hearing must occur between July and September (with specific sequencing relative to budget adoption timelines).
    • Public participation: Any member of the public may speak.
    • Information to be presented at the hearing includes: subdivision name, proposed property tax request, changes in assessed value, calculated equivalent tax rate, impact on the subdivision’s budget, and contact information for residents.
    • Notice by postcard, county website (in applicable counties with larger populations), and newspaper publication is required.
    • Postcards must include “NOTICE OF PROPOSED TAX INCREASE” and a summary of the proposed changes and estimated impact.
  • Administrative coordination: The county clerk must coordinate notices, with costs allocated among participating subdivisions; the county may front initial printing costs funded from the county general fund.

Who is affected

  • Political subdivisions: counties, cities, school districts, and community colleges within Nebraska that seek to increase property tax requests beyond the allowable growth.
  • Property taxpayers: recipients of notices and voters considering levy changes; residents in counties conducting joint public hearings.

Timeline and process notes

  • Introduced: January 22, 2025.
  • Hearing: February 20, 2025 (Committee: Revenue).
  • Effective provisions: Contain an emergency clause in LB575, indicating intended immediate effect upon enactment.
  • Public hearing window for joint hearings: July through September (specific dates coordinated by the county clerk).

Bottom line

LB 575 would tighten control over property tax levies by tying increases to the prior year’s revenue, require a supermajority vote for exceedances, and overhaul public-notice and joint-hearing procedures when multiple subdivisions pursue increases within a county.

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

Sign in to ask a question.