PREPARED BY: John Wiemer
LB 22 DATE PREPARED: August 05, 2024
PHONE: 402-471-0051
Revision: 01
Revised per response from the Dept. of Revenue FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS $136,458 $836,000,000
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $136,458 $836,000,000
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 22 would make changes to the Homestead Exemption Program.
Under the bill, all homesteads in the state would be assessed for taxation the same as other property, except that commencing January
1, 2025, there would be exempt from taxation of homesteads the first $100,000 of the actual value of the homestead.
The exemptions in sections 77-3506, 77-3507, and 77-3508 would be in addition to the exemption under this bill.
The Department of Revenue (DOR) estimates the following increase to General Fund expenditures under the Homestead Exemption
Program as a result of this bill :
• FY25: $0
• FY26: $836,000 ,000
• FY27: $857,000,000
The DOR also estimates a one -time programming charge of $136,458 to be paid to the Office of the Chief Information Officer (OCIO)
as a result of the bill.
There is no basis to disagree with these estimates by the DOR.
The Douglas County Asses sor/Register of Deeds Office estimates additional staff needed due to the expected increase in applications
for the Program. The Lan caster County Assessor/Register of Deeds Office also estimates a need for additional staff and IT costs as a
result of the bill. The 1% of the total rei mbursement from the state to political subdivisions retained in the county general fund would
help counties cover costs connected to the expansion of the Program under this bill.
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 22—Special Session FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Douglas County Assessor/Register of Deeds Office
Prepared by:
(3) Michael Goodwillie Date Prepared:
(4)
7/31/2024 Phone:
(5)
402 444-6703
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
$1,163,700 $1,192,865
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$1,163,700 $1,192,865
Explanation of Estimate:
LB 22 would use the vehicle of homestead exemption to provide an exemption from property taxes for the first
$100,000 in value for all owner-occupied residences. This exemption would apply regardless of the income of
the applicant or the value of the house—the two “means-testing” provisions of the current homestead
exemption program. The property owner would have to be the owner of record and reside in the property
between January 1 and August 15 and there is an annual application requirement. The ”tax loss” for the
political subdivisions would be reimbursed by the state.
In reviewing the potential impact of LB 22, our office does not monitor who actually lives in a dwelling. So, as
an approximation of owner-occupancy, we used properties where the owner’s mailing address and the
property address were the same. There are currently 143,132 properties that fit that description in Douglas
County. That is the universe of potential applicants/recipients. Currently, there are 13,712 properties that are
currently receiving a full or partial homestead exemption. Since all fit the category of owner-occupants,
subtracting that number from the total number of owner-occupied properties would leave 129,420 potential new
applicants.
In terms of administrative costs, processing up to 129,200 new homestead applicants would require additional
staff. To give you an idea of what that might look like, our office gets 14,000- 15,000 homestead applications
every year and they are processed by nine staffers . Adding potentially close to 130,000 new applications
would require considerable investments in staff to process and review the applications. There may be ways to
streamline the process but there will be similar issues for these applicants that we deal with in our current
homestead review—Who actually owns the home and has the applicant lived there during the residency period
required by the homestead statutes—that will require more review than simply a rubber stamp of every
application that comes in. Our office estimates a minimum of 25 new staffers.
As for the value of the exemption and potential tax loss, since there could be up to 129,200 new applications,
the amount of value could be up to $12,920,000,000, when the number of potential new applicants is multiplied
by $100,000. That is likely to be a bit high —there will be some homesteads with a value of less than
$100,000. But given the market for single- family residences in Douglas County, that number is getting ever
smaller. That figure, when multiplied by a tax rate of 2.245 percent, would result in a potential tax loss of
$290,054,000 that would be subject to state reimbursement.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Assessor Support Tech 25 25 $1,163,760 $1,192,865
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… ..... $1,163,700 $1,192,865
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 22 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Lancaster County Assessor/Register of Deeds
Prepared by:
(3) Dan Nolte Date Prepared:
(4)
07/30/24 Phone:
(5)
402-441-7463
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
75,000 65,000
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
Additional full time staff person to process applications, $65,000
Computer programming changes $10,000
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements………… …………...
TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 22 Special Session FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Association of County Officials (NACO)
Prepared by:
(3) Elaine Menzel Date Prepared:
(4)
7/29/2024 Phone:
(5)
402.434.5660
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
LB 22 would expand the current homestead exemption program by assessing all homesteads for
taxation the same as other property, except beginning January 1, 2025, the first $100,000 of the
actual value of the homestead shall be exempt.
After reviewing the number of residential improvement records and agricultural with home site
improvement records using the most available CTL data, w e then multiplied the number of records by
$100,000 to estimate the loss in taxable valuation. We then multiplied the county amounts by the
2023 Levy to estimate the lost county revenue. A lso, we checked this figure using 2020 census data
for owner-occupied housing.
The estimate of the proposed exemption would result in a reduction of taxable valuation somewhere
between $50,702,100,000 and $68,422,900,000. We also estimate that the proposed exemption
would result in lost county revenue somewhere between $148,215,991 and $200,087,053.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
24-25 25-26
2024-25
EXPENDITURES
2025-26
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… .....
LB 22 Fiscal Note 2024
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: LEAVE BLANK Phone: 471-5896
FY 2024-2025 FY 2025-2026 FY 2026-2027
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $136,458 $836,000,000 $857,000,000
Cash Funds
Federal Funds
Other Funds
Total Funds $136,458 $836,000,000 $857,000,000
Major Objects of Expenditure
24-25 25-26 26-27 24-25 25-26 26-27
Class Code Classification Title FTE FTE FTE Expenditures Expenditures Expenditures
Benefits………………………………………………………………………………………………………….
Operating Costs…………………………………………………………………………………………………. $136,458
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………...
Capital Improvements…………………………………………………………………………………………...
Total……………………………………………………………………………………………………………. $136,458
LB 22 states that the Legislature finds and declares the homestead exemption should be protected and expanded
to provide broad-based property tax relief to Nebraska residents. Provides that the first $100,000 of a homestead’s
actual value will be exempt from taxation. The homestead exemptions in Neb. Rev. Stat. §§ 77-3506, 77-3507,
and 77-3508 will be in addition to the $100,000 exemption. The definition of “homestead” from Neb. Rev. Stat.
§ 77-3502 remains unchanged.
The tax statement must reflect the tax loss caused by the new exemption. The county treasurer and assessor must
certify this loss, which will be reimbursed by the state as a homestead exemption.
It is estimated that LB 22 will impact General Fund expenditures as follows:
Fiscal Year General Fund Expenditures
FY2024-2025 $ -
FY2025-2026 $ 836,000,000
FY2026-2027 $ 857,000,000
It is estimated that LB 22 will require a one-time programming charge of the $136,458 paid to OCIO for web
team development.
The operative date for this bill is January 1, 2025.