PREPARED BY: John Wiemer
LB 501 DATE PREPARED: February 04, 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 501 changes the term of “destroyed” real property to “damaged” real property for when assessed values can be adjusted.
Additionally, the bill adds “other events causing significant property damage” to fires, earthquakes, floods and tornadoes that already
provide property tax relief to owners of real property affected by the listed events.
Damaged real property means real property that suffers significant property damage on or after January 1 and before July 1 of the
current assessment year. Damaged real property does not include property suffering significant property damage that is caused by the
owner of the property. Significant property damage means damage to an improvement exceeding 20% of the improvement ’s assessed
value in the current tax year or damage to land exceeding 20% of the land’ s assessed value in the current year.
Under the bill, if the real property suffers significant property damage prior to July 1 of the current assessment year, the property owner
shall file a report of the damaged real property with the county clerk of the county in w hich the property is located on or before July 15 of
the current assessment year. The report of damaged real prop erty shall be made on a form prescribed by the Tax Commissioner.
The bill adds that the county assessor shall inspect and review all properties for which a report has been file d and shall submit a
comprehensive report of all such properties to the county board of equalization on or before July 20 of the current assessment year.
The county assessor’s report shall be made on a form prescribed by the Tax Commissioner and shall include all reports filed by
property owners. The county board of equalization shall consider the report received from the county assessor.
This bill contains the emergency clause and becomes law upon enactment.
The Department of Revenue estimates no fiscal impact to the General Fund from the bill and minimal costs to the Department to
implement this bill. There is no basis to disagree with these estimates.
The Tax Equalization and Review Commission estimates no fiscal impact as a result of this bill. There is no basis to disagree.
The Douglas and Lancaster County Assessor/Register of Deeds Offices estimate no fiscal impact from this bill.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 501 AM: AGENCY/POLT. SUB: Tax Equalization and Review Commission
REVIEWED BY: Ryan Yang DATE: 1/24/2025 PHONE: (402) 471- 4178
COMMENTS: Concur with the Tax Equalization and Review Commission assessment of no fiscal impact from LB 501.
ADMINISTRATIVE SERVICES ST ATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 501 AM: AGENCY/POLT. SUB: Nebraska Association of County Officials
REVIEWED BY: Ryan Yang DATE: 2/3/2025 PHONE: (402) 471-4178
COMMENTS: No basis to disagree with the Nebraska Association of County Officials assessment of no fiscal impact
from LB 501.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVI EW OF AGENCY & POLT. SUB. RESPONSE
LB: 501 AM: AGENCY/POLT. SUB: Lancaster County Assessor/Register of Deeds
REVIEWED BY: Ryan Yang DATE: 1/28/2025 PHONE: (402) 471- 4178
COMMENTS: No basis to disagree with the Lancaster County Assessor/Register of Deeds assessment of no fiscal impact
from LB 501.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 501 AM: AGENCY/POLT. SUB: Douglas County Assessor/Register of Deeds
REVIEWED BY: Ryan Yang DATE: 1/31/2025 PHONE: (402) 471- 4178
COMMENTS: No basis to disagree with the Douglas County Assessor/Register of Deeds assessment of no fiscal impact
from LB 501.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 501 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Douglas County Assessor/Register of Deeds Office
Prepared by:
(3) Michael Goodwillie Date Prepared:
(4)
1/27/2025 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 0
Explanation of Estimate: LB 501 would make some changes to the series of statutes relating to changes in value to properties that sustain significant damage after January 1 and before July 1. Generally, property is valued for tax purposes
as it exists on January 1 of the assessment/tax year. The one exception is for property that sustains significant damage, typically due to things like floods and tornadoes, prior to July 1. The property owner files a report with the county clerk
and assessor on or before July 15 and the county board of equalization determines whether a change in value is merited.
LB 501 replaces the language “destroyed” real property with “damaged” real property and clarifies how much damage is
necessary to get relief—20% of the improvement’s assessed value or 20% of the land’s assessed value, although it removes
language to the assessment being determined by the county assessor. That may be assumed or, I suppose it could mean
that the property owner could add its own appraisal to the report it files with the county. It does add a requirement that
the local assessor inspect and review the properties seeking relief and provide a report to the local Board of Equalization
on or before July 20 and shall include the reports filed by the property owners. However, as a practical matter, our office
has provided a spreadsheet to the BOE regarding each property seeking relief with owner name, address, parcel number,
previous value (land, improvement, total) and post- damage recommended value (land, improvement, total). The form for
the report to the BOE shall be prescribed by the Tax Commissioner.
LB 501 seems to require what this office has been doing anyway with existing staff. Obviously, the amount of work varies
with how many reports we get from taxpayers—years with floods or tornadoes are going to be busier than those without.
But with last year’s tornado, we were able to review all of the properties with existing staff —we anticipate the same going
forward and do not anticipate fiscal impact to this office.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MA JOR 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……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 501 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Lancaster County Assessor/Register of Deeds
Prepared by:
(3) Dan Nolte Date Prepared:
(4)
01/24/25 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 does not appear to have a fiscal impact 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……………………………… .....
LB 0501 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 01/31/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $ 0 $ 0 $ 0
Cash Funds
Federal Funds
Other Funds
Total Funds $ 0 $ 0 $ 0
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 501 expands the events which would qualify taxpayers to file a claim for destroyed real property by:
• Adding “and other events causing significant property damage” to the legislature’s findings of what events
would equate to granting property tax relief .
• Replacing the word “destroyed” with “ damaged” through statutes.
• Removing the definition of calamity which limited events to natural events like fires, earthquakes, floods,
or tornadoes; and
• Removing the requirement that the damaged must be on property located in an area that has been declared
a disaster area by the Governor and the housing inspector determined the property is uninhabitable or
unlivable
LB 501 requires the assessor to inspect and review all properties that a report was filed on and submit a
comprehensive report to the county board of equalization for the board to take action on. The Tax C ommissioner
must create the form for the county assessor to use to file their report.
The Department of Revenue (DOR) estimates that this bill will have no impact on the General Fund revenues.
It is estimated that there will be minimal costs to the DOR to implement this bill.
LB 501 has an emergency clause and becomes law upon enactment. Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 501 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Tax Equalization & Review Commission
Prepared by:
(3) Rob Hotz Date Prepared:
(4)
January 24, 2025 Phone:
(5)
(402) 471-2842
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:
No fiscal impact
_____________________________________________________________________________________________________ _
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……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 501 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Association of County Officials
Prepared by:
(3) Elaine Menzel Date Prepared:
(4)
1/30 /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:
Based on a 2023 survey:
I. 53 counties responded to the survey:
Antelope, Arthur, Blaine, Boyd, Buffalo, Burt, Butler, Cass, Chase, Clay, Colfax, Cuming, Dixon, Dodge,
Franklin, Frontier, Furnas, Garden, Garfield, Gosper, Grant, Hall, Holt, Hooker, Howard, Jefferson,
Johnson, Kearney, Keith, Keya Paha, Logan, Loup, Madison, McPherson, Merrick, Morrill, Nance,
Nuckolls, Otoe, Pawnee, Perkins, Platte, Polk, Saline, Scotts Bluff, Seward, Sioux, Stanton, Thayer,
Thomas, Valley, Webster, and Wheeler.
II. 19 counties had at least one application submitted for destroyed property; 34 counties did not have an
application submitted for destroyed property.
III. Among the 19 counties that had at least one application submitted for destroyed property, the total
number of applications was 169. One county had 41 applications; the county did not reject any of the
applications. Instead, the county removed the destroyed buildings and reduced the remaining buildings
accordingly; if we remove this outlier county, the total number of applications is reduced to 128. The
average number of submitted applications was 9 (12 counties had 1-3 applications, while the remaining
6 counties had between 6 and 41 applications). If we remove the outlier county, the average number of
applications was 7.
IV. Among the 19 counties that had at least one application submitted for destroyed property, the total
valuation of damaged property submitted for application was $25,698,058; if we remove the outlier
county, the total drops to $9,453,142. The average valuation of submitted applications was $8,003; if we
remove the outlier county, the average drops to $4,103.
V. Among the 19 counties that had at least one application submitted for destroyed property, the board
of equalization rejected a total of 13 applications (8% of total applications); there was no change in the
total number of rejections when the outlier county was removed, but the ratio of rejections to total
applications rose to 10%.
VI. Among the 19 counties that had at least one application submitted for destroyed property, the total
amount of the rejected valuation was $1,124,627; there was no change when the outlier county was
removed. The average amount of the rejected valuation per application was $14,418; there was no
change when the outlier county was removed.
Because the levy rate would presumably increase as the tax base is diminished, there would be no fiscal
impact to revenues, as no counties are near enough the 50 cent constitutional limit for their levy
authority to be affected.
_____________________________________________________________________________________________________ _
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……………………………… .....