PREPARED BY: John Wiemer
LB 69 DATE PREPARED: August 07, 2024
PHONE: 402-471-0051
Revision: 01
Revised per Response from 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 $337,000,000
CASH FUNDS ($340,000,000) ($337,000,000)
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $136,458 ($340,000,000) $0
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
This fiscal note has been updated to reflect the Department of Revenue’s (DOR) costs to implement this bill as well to incorporate their
estimated revenue impacts.
Under LB 69, the 70% of the casino gaming tax would be credited to a fund named the Property Tax Assistance Cash Fund under the
bill. The Property Tax Assistance Cash Fund would be the new name of the Property Tax Credit Cash Fund per the bill.
The bill would change the 40% of the 5% tax of the net operating revenue for each cash device to go to the Property Tax Assistance
Cash Fund, as well.
The Property Tax Credit Act would be renamed as the Property Tax Assistance Act and the purpose for the Act would be to provide
property tax relief for property taxes levied against homesteads. The minimum amount of relief under the Act would be eliminated
starting tax year 2025.
Under the bill, for tax year 2025, all homesteads in the state would be assessed for taxation the same as other property, except that
there would be exempt from taxation of a homestead a dollar amount equal to a percentage of the assessed value of the homestead.
Such percentage would be applied statewide and would be determined annually by the Property Tax Administrator based on
appropriations to the Property Tax Assistance Cash Fund. For tax year, 2025, an owner of a homestead would file an application for the
homestead exemption. For tax year 2026 and subsequent tax years, if an owner has been granted the homestead exemption provided
in this bill, no reapplication need be filed for succeeding years, in which case the county assessor would determine whether the
claimant qualifies for the homestead exemption in such succeeding years as though a claim were made. Sections 77-3501 to 77-3529
and Laws 2024, LB 126, section 3, would apply to the homestead exemption provided in this bill. Reimbursement to counties for the
homestead exemption would be made from the Property Tax Assistance Cash Fund.
The State Treasurer would transfer from the General Fund to the Property Tax Assistance Cash Fund $90 million by August 1, 2025.
The Legislature would have the power to transfer funds from the Property Tax Assistance Cash Fund to the General Fund.
The DOR estimates the following de crease to the Property Tax Assistance Cash Fund (which would be an increase to General Fund
revenues):
• FY26: ($340,000,000)
• FY27: ($445,000,000)
• FY28: ($460,000,000)
• FY29: ($475,000,000)
Additionally, the DOR estimates a one-time programming cost of $136,458 to be paid to the Office of the Chief Information Officer
(OCIO) as result of this bill.
We agree with these estimates by the DOR, ex cept that the increase to the General Fund would be $3 million less each fiscal year and
the decreas e to the Property Tax Assistance Cash Fund would be $3 million less each fiscal year, as well, due to the transfer from the
General Fund to this Cash Fund being $3 million less than the minimum amount of relief under the Property Tax Credit Act before it
accrues interest and is expended out of the Cash Fund at the minimum relief amount under the Act.
Please complete ALL (5) blanks in the first three lines. 2024
LB
(1) 69 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
NE Racing & Gaming Commission
Prepared by:
(3) Rita Pracht Date Prepared:
(4)
7/29/24 Phone:
(5)
531-310-4536
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:
No fiscal impact
_____________________________________________________________________________________________________ _
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 0069 Fiscal Note 2024
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 08/06/2024 Phone: 471-5896
FY 2024-2025 FY 2025-2026 FY 2026-2027
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $136,458 $ 0 $ 340,000,000 $ 445,000,000
Cash Funds $(340,000,000) $(340,000,000) $(445,000,000) $(445,000,000)
Federal Funds
Other Funds
Total Funds $136,458 $ 0 $(340,000,000) $ 0 $(445,000,000) $ 0
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 69 renames the Property Tax Credit Act (Neb. Rev. Stat. 77-4209 to 77-4212) to the Property Tax Assistance
Act and renames the Property Tax Credit Cash Fund to the Property Tax Assistance Cash Fund throughout
statutes.
LB 69 removes all provisions related to a minimum amount of relief granted under the Property Tax Credit Act
beginning in tax year 2025. It also sunsets all disbursement provisions by adding that they apply prior to tax year
2025.
The new homestead exemption credit requires the Property Tax Administrator to annually determine the amount
of the exemption based on the appropriations to the Property Tax Assistance Cash Fund. The exemption will be
an amount equal to a percentage of the assessed value of the homestead. Taxpayers will be required to apply for
the new homestead exemption beginning in tax year 2025. The taxpayer will not have to reapply once they are
granted the exemption and the county will determine if the applicant qualifies in future years as though an
application was filed. LB69 adds that current homestead statutes, 77-3501 to 77-3529, apply to the homestead
exemption provided in the Property Tax Assistance Act.
LB 69 requires the State Treasurer to transfer from the General Fund to the Property Tax Assistance Cash Fund
ninety million dollars by August 1, 2025.
LB 69 is estimated to have the following impact on the Property Tax Assistance Fund (which is an increase in the
General Fund revenues) :
FY25-26 $ (340,000,000)
FY26-27 $ (445,000,000)
FY27-28 $ (460,000,000)
FY28-29 $ (475,000,000)
LB 69 will require a one-time programming cost of $136,458 paid to the OCIO for programming changes.