PREPARED BY: John Wiemer
LB 209 DATE PREPARED: January 22, 2025
PHONE: 402-471-0051
Revision: 00
FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 209 would make changes to clarify language for the property tax exemption regarding skilled nursing facil ities, nursing facilities, and
assisted-living facilities.
The bill also would make changes to section 77-3506 so that those assigned a total disability rating for compensation pursuant to 38
C.F.R. 4.16 would receive 100% of the exempt amount as the exemption for their homestead under the Homestead Program.
This bill contains the emergency clause.
The Department of Revenue estimates minimal impact on General Fund expenditures and minimal costs to it as a result of the bill.
There is no basis to disagree with these estim ates.
Political subdivisions would be reimbursed for revenue losses associated with exemptions as a result of this bill.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 209 AM: AGENCY/POLT. SUB: L ancaster County Assessor/Register of Deeds
REVIEWED BY: Ryan Yang DATE: 1/16/2025 PHONE: (402) 471-4178
COMMENTS: The Lancaster County Assessor/Register of Deeds assessment of no fiscal impact from LB 209 appears
reasonable.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 209 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Douglas County Assessor/Register of Deeds
Prepared by:
(3) Michael Goodwillie Date Prepared:
(4)
1/21/2025 Phone:
(5)
402-444-6703
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
0 0 0 o
Explanation of Estimate: LB 209 does two things: It seeks to clarify a property tax exemption created last year and it adds a group to those veterans entitled to a homestead exemption for the full value of their property, regardless of the
value of the home or their income.
The bill adds the words “for-profit” to the exemption created last year for “any” skilled nursing facility, nursing facility, or
assisted living facility. Because the Legislature used the word “any” last year and because the state supreme court has
ruled that nonprofit nursing homes and assisted-living facilities qualify for property tax exemption in the past, the
common understanding was that the exemption, based on the percentage of Medicaid beds at the facility, would apply to
for-profit entities. That was certainly the view expressed by the Department of Revenue in materials it shared with county
assessment offices about new exemptions in 2025. Because the bill does not affect existing practice in this office, there is
no additional administrative cost to this office associated with the bill.
The second part of the bill adds a group of veterans to the class that can receive a homestead exemption for the total value
of their home, without regard to the value of that home or their income. (Value and income are means tests for a number
of classes of people seeking homestead exemption.) The group would be those assigned a total disability rating for
compensation pursuant to 38 C.F.R. 4.16. That regulation includes those whose service-connected disability renders them
unable to secure or follow a substantially gainful occupation. From the regulation, it appears to be less than a 100% total
disability rating, but at least 60% or, if more than one disability, one shall be at least 40% and the other needs to bring the
total disability rating to 70% or more.
Adding any additional classes of applicants to homestead will add to staff time. Currently, our office has nine people in the
section that reviews homestead applications and last year we had over 14,500 in the homestead program. It is hard to
estimate how many new applicants there may be—we have reached out to Benson Elmore, the County Veterans Service
Officer for an estimate of how many potential applicants there would be under the bill. Of course, even with a raw number
of veterans who fit the new category, they also would have to be homeowners, which would limit the pool of the applicants.
At this point, depending on the numbers we might get on this from Mr. Elmore, we think there would not be so many
applicants as to require additional staffing. So, at this time, we see no fiscal impact to the office.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services: POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURE S
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 209 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Association of County Officials
Prepared by:
(3) Elaine Menzel Date Prepared:
(4)
1/20 /2025 Phone:
(5)
402.434.5660
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
LB209 would provide for exemptions under the Personal Property Tax Relief Act. For tax years after 2024, the
county assessor would be required to prepare an abstract of the property assessment rolls of locally assessed
personal property. Other restored duties would be performed by the Property Tax Administrator.
The fiscal impact would be minimal.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… .....
LB 209 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 01/21/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds See Below See Below See Below
Cash Funds
Federal Funds
Other Funds
Total Funds See Below See Below See Below
Major Objects of Expenditure
25-26 26-27 27-28 25-26 26-27 27-28
Class Code Classification Title FTE FTE FTE Expenditures Expenditures Expenditures
Benefits………………………………………………………………………………………………………….
Operating Costs………………………………………………………………………………………………….
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………...
Capital Improvements…………………………………………………………………………………………...
Total…………………………………………………………………………………………………………….
LB 209 deals with changes to homestead exemption for veterans. Currently, veterans who are permanently and
totally physically disabled are entitled to a homestead exemption. These veterans are rated at 100% physically
disabled by the Veterans Affair (VA). However, what is less clear is how veterans who have a less than a VA
100% permanently and total physical disabled rating should be treated when the veteran has a status of Individual
Unemployability (IU). IU indicates that the veteran is unable to secure or follow gainful employment due to a
service- connected disability and as a result the veteran is paid VA compensation at the level of a 100%
permanently and total physical disabled rating. Since there has been inconsistent treatment of IU veterans, this
proposed amendment gives clarification by explicitly granting a homestead exemption to IU veterans.
LB 209 also addressed property tax exemptions for profit and nonprofit nursing facilities. The bill clarifies the
difference between how for profit and nonprofit nursing facilities are treated when it comes to property tax
exemptions. This language clarifies changes made by LB 1317 in 2024 and is consistent with how county assessor
offices are implementing the exemption.
A portion of veterans eligible under LB 209 may already be encompassed within the existing homestead program.
Consequently, the precise fiscal impact of LB 209 remains indeterminate. However, it is anticipated that the effect
on General Fund expenditures would be minimal.
It is estimated that there will be minimal costs to the Department of Revenue to implement this bill.
This bill contains an emergency clause and becomes law upon enactment.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 209 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Lancaster County Assessor/Register of Deeds
Prepared by:
(3) Dan Nolte Date Prepared:
(4)
01/15/25 Phone:
(5)
402-441-7463
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate: The proposed legislation will have no fiscal imp act on this office.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………………... ……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… .....