PREPARED BY: John Wiemer
LB 628 DATE PREPARED: February 19, 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 $902,267 $101,600
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $902,267 $101,600
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 628 establishes the Recreational Trail Easement Property Tax Exemption Act.
The bill provides that a taxpayer who encumbers their property with a perpetual recreational trail easement is eligible for an annual
property tax exemption equal t o ten cents for each square foot of the property encumbered by the easement. If the exemption amount
exceeds the taxpayer’s property tax liability for the taxab le year, the excess amount may not be carried forward to subsequent years .
The bill provides the qualifications for the property tax exemption.
Under the bill, the taxpayer shall submit an application to the Department of Revenue (DOR). Upon verification of the qualification for
the property tax exemption, the DOR shall issue a property tax exemption certificate to the taxpayer.
The DOR shall adopt and promulgate rules and regulations necessary to carry out the Act, and the bill specifies what rules and
regulations the DOR shall include.
The bill amends section 76-214 so that the statement required under subsection (1) would include easements used to qualify for the
property tax exemption provide d by the Act.
The bill is operative on January 1, 2026.
The DOR estimates no impact on General Fund revenues.
The DOR estimates a one-time programming charge of $798,867 to be paid to the Office of the Chief Information Officer (OCIO) for
developing an electronic application system as well as a database to track and hand le the applications between DOR and counties.
DOR also estimates the need for 1.0 FTE IT Business Systems Analyst-Coordinator to implement this bill.
The Lancaster County Asse ssor/Register of Deeds Office estimates computer programming and related costs as a result of this bill.
Qualified property tax exemptions, under this bill, are estimated to decrease pollical subdivision property tax revenues as a result of this
bill.
A change in the taxable base for schools due to the exemption of property could have an impact on state aid under TEEOSA, but any
such amount is indeterminate.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REV IEW OF AGENCY & POLT. SUB. RESPONSE
LB: 628 AM: AGENCY/POLT. SUB: Douglas County Assessor/Register of Deeds
REVIEWED BY: Ryan Yang DATE: 2/1/2025 PHONE: (402) 471- 4178
COMMENTS: No basis to disagree with the Douglas County Assessor/Register of Deeds assessment of indeterminate fiscal
impact from LB 628.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 628 AM: AGENCY/POLT. SUB: Lancaster County, Nebraska
REVIEWED BY: Ryan Yang DATE: 2/4/2025 PHONE: (402) 471- 4178
COMMENTS: No basis to disagree with the Lancaster County, Nebraska assessment of indeterminate fiscal impact
from LB 628.
ADMINISTRATIVE SERVICES STATE BUDGET D IVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 628 AM: AGENCY/POLT. SUB: Lancaster County Assessor/Re gister of Deeds
REVIEWED BY: Ryan Yang DATE: PHONE: (402) 471-4178
COMMENTS: No basis to disagree with the Lancaster County Assessor/Register of Deeds assessment of minimal fiscal
impact from LB 628.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 628 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 628 would provide a small property tax exemption for square footage of property
encumbered by a recreational trail easement. That easement would have to be recorded with the local register of deeds
office and would be worth 10 cents per square foot of the property encumbered by the easement. The taxpayer would
apply for the exemption with the Nebraska Department of Revenue, who would issue a “certificate” to the taxpayer. What
isn’t clear from LB 628 is what happens next. Does the taxpayer bring the certificate to the assessor’s office? How is the
amount of the exemption determined? Is the value of the property reduced to work backward to the exemption amount?
Or does the amount of the exemption go to the Treasurer’s Office to be subtracted from the bill, which would probably be
easier since the exemption seems to be expressed in terms of tax dollars rather than value.
In any event, the applications are with the Department of Revenue, meaning we do not see an additional administrative
burden on this office. As for the taxes represented by the exemption, given the size of the tax base in Douglas County, this
does not appear to be a bill that would result in a significant tax loss to the county or its political subdivisions.
It isn’t clear from the bill what this will look like with the operation of the school district tax credit and the restrictions on
the property tax requests on local political subdivisions —last year’s request, plus growth, plus an inflation factor, plus
exceptions for things like emergencies and public safety. But as an example, from 2022 to 2023 taxes levied by the
political subdivisions in Douglas County increased by about 7.8%, which more or less mirrors the increase in market values
of real property in the county. The difference was approximately $104,278,568. A three percent difference would have
been $39,870,477. There is an exception for improvements added that might have made the difference less, but it would
still be a significant difference.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EX PENDITURE
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) 628 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Lancaster County Assessor/Register of Deeds
Prepared by:
(3) Dan Nolte Date Prepared:
(4)
01/27/25 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
$10,000 0
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate: This bill would require some computer programming and related expenses.
_____________________________________________________________________________________________________ _
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) 628 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Lancaster County, Nebraska
Prepared by:
(3) Dennis Meyer Date Prepared:
(4)
1/30/2025 Phone:
(5)
402-441-6869
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:
Under LB628, landowners who grant such easements on their property are eligible for an annual property tax exemption
of the encumbered property. The fiscal impact on Lancaster County will depend on the number and size of properties
designated as recreational trail easements. Each qualifying easement reduces the county's property tax revenue by ten
cents per square foot.
_____________________________________________________________________________________________________ _
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 0628 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 02/14/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $902,267 $ 0 $101,600 $ 0 $101,600 $ 0
Cash Funds
Federal Funds
Other Funds
Total Funds $902,267 $ 0 $101,600 $ 0 $101,600 $ 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
A07082
Information Technology Business Systems
Analyst/Coordinator
1.0 1.0 1.0 $74,000 $76,400 $76,400
Benefits…………………………………………………………………………………………………………. $24,400 $25,200 $25,200
Operating Costs…………………………………………………………………………………………………. $798,867
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………... $5,000
Capital Improvements…………………………………………………………………………………………...
Total……………………………………………………………………………………………………………. $902,267 $101,600 $101,600
LB 628 creates the Recreational Trail Easement Property Tax Exemption Act (Act). The Act would grant
taxpayers who encumber their property with a perpetual easement for nonmotorized recreational use a property
tax exemption equal to 0.1 cents square foot of property encumbered by the easement. The Act contains the
qualifications for the easement.
Taxpayers submit their application to the Department of Revenue (DOR) and requires DOR to adopt and
promulgate rules and regulations necessary to carry out the Act.
LB 628 creates a property tax exemption under Neb. Rev. Stat. § 77 -202(1) to grant a 100% exemption for any
portion of the property owned by a taxpayer subject to a qualifying easement under the Act.
LB628 exempts easements filed under the Act from requiring a real estate transfer statement.
It is estimated that this bill will have no impact on General Fund revenues.
LB 628 will require a one-time programming charge of $798,867 paid to OCIO for developing an electronic
application system as well as a database to track and handle the applications between DOR and counties. DOR
will also need one FTE at the Business Systems Analyst-Coordinator level to implement this bill.
The operative date of this bill is January 1, 2026.