LINCOLN, NE (September 15, 2022) – Governor Pete Ricketts today urged Nebraskans to take advantage of a “historic amount of tax relief available”. The Governor and Legislature have passed $12.7 billion in total tax relief. Of this amount, over $10 billion is property tax relief.
As a result of legislation passed in 2022, Gov. Ricketts announced that Nebraska property taxpayers will be eligible for significantly increased tax relief when they file their taxes for this year. To receive the full relief they’re entitled to, taxpayers must claim property tax credits when filing their Nebraska state income taxes.
“The State of Nebraska’s financial responsibility has made record tax relief possible,” said Gov. Ricketts. “For tax year 2022, the property tax credit rebate on taxes paid to K-12 public schools will grow from 25% to 30%. Nebraska property taxpayers will also be eligible for a new 30% rebate on property taxes paid to community colleges. This relief is especially significant as families deal with historic high inflation. I encourage Nebraskans to make sure they claim all the tax credits they’re eligible to receive.”
State Senator Lou Ann Linehan, Chair of the Legislature’s Revenue Committee, joined the Governor at today’s news conference. She thanked her colleagues on the Revenue Committee for their hard work to pass tax relief. She also indicated her intent to pursue more property tax relief in the 2023 legislative session.
Additionally, Tax Commissioner Tony Fulton reminded Nebraskans of the need to claim their refundable income tax credit on property taxes. These credits can be claimed retroactively going back three years. Commissioner Fulton advised Nebraskans to file an amended return for previous years if they did not claim the property tax credit for tax year 2020 or 2021. For information on how to claim the refundable income tax credit, go to revenue.nebraska.gov/about/nebraska-property-tax-credit.
This spring, the Governor signed LB 873 into law. It grows the refundable income tax credit on property taxes paid to support K-12 public schools. This rebate was 6% in tax year 2020 and 25% in tax year 2021. Today, Gov. Ricketts announced that it will rise to 30% in tax year 2022.
LB 873 also creates a tax rebate on property taxes paid to community colleges. This new rebate will be $50 million for the 2022 tax year and grow to $195 million by tax year 2026. For tax year 2022, this equates to a 30% rebate.
Additionally, Nebraskans continue to benefit from the Property Tax Credit Relief Fund, which has increased from $140 million to $313 million during Gov. Ricketts’ administration. There is no need to claim this credit, which is automatically applied to taxpayers’ property tax bills.
According to calculations from the Nebraska Department of Revenue, a taxpayer in Lincoln with a home valued at $250,000 will receive combined property tax relief of $1,137 from the State in tax year 2022.