PREPARED BY: John Wiemer
LB 643 DATE PREPARED: March 25, 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 $57,123 $2,260,000 $5,200,000
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $57,123 $2,260,000 $5,200,000
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 643 provides that for taxable years beginning on or after January 1, 2026, any person who owns directly or indirectly more than 30
parcels of single-family residential property as defined in section 77-3505.04 as in vestment or rental property shall not claim any
deductions from Nebraska income taxes relating to any interest or taxes paid on or any maintenance of such property. The bill specifies
when this shall not apply.
A person may appeal to the Department of Revenue (DOR) that the single-family residential property of such person was offered for
sale at a fair market rate for at least 90 days and there were no good faith offers on such property. If such appeal is successful, such
person may claim deductions from Nebraska income taxes relating to any interest or taxes paid on or any maintenance of such
property.
The DOR estimates the following increases to General Fund revenues as a result of the bill:
• FY26: $2,260,000
• FY27: $5,200,000
• FY28: $4,690,000
• FY29: $4,470,000
The DOR also estimates a one-time programming charge of $57,123 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.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 643 AM: AGENCY/POLT. SUB: Department of Revenue
REVIEWED BY: Ryan Yang DATE: 3/21/2025 PHONE: (402) 471-4178
COMMENTS: The Department of Revenue assessments of General Fund revenue impact and impact to the agency
from LB 643 appear reasonable.
LB 0643 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 03/21/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $ 57,123 $ 2,260,000 $ 0 $ 5,200,000 $ 0 $ 4,690,000
Cash Funds
Federal Funds
Other Funds
Total Funds $ 57,123 $ 2,260,000 $ 0 $ 5,200,000 $ 0 $ 4,690,000
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…………………………………………………………………………………………………. $57,123 $ 0 $ 0
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………...
Capital Improvements…………………………………………………………………………………………...
Total……………………………………………………………………………………………………………. $57,123 $ 0 $ 0
LB 643 provides that, for taxable years beginning on or after January 1, 2026, any person who owns directly or
indirectly more than 30 parcels of single-family residential property, as defined in Neb. Rev. Stat. § 77 -3505.04
as investment or rental property, will not claim any deductions from Nebraska income tax relating to any interest
or taxes paid on or any maintenance of such property. This section does not apply to any:
• Property of a person used as principal residence of such person
• Property of a qualified nonprofit organization (as defined by LB 643); or
• Person who sold at least:
o Ten percent of the single-family residential property that was owned by such a person on January
1 of any calendar year and such property was sold during such year to buyers who will reside at
such property; or
o Five percent of the single-family residential property that was owned by such person on January 1
of any calendar year and such properties were sold during such year to first-time homebuyers as
defined in § 58 -211.01.
A person may appeal to the Department of Revenue (DOR) that the single-family residential property of such
person was offered for sale at a fair market rate for at least 90 days and there were no good faith offers on such
property. If such appeal is successful, such person may claim deductions from Nebraska income taxes relating to
any interest or taxes paid on or any maintenance of such property.
LB 643 defines a qualified nonprofit organization as any organization not organized for profit; and has a principal
purpose of the creation, development, or preservation of affordable housing. The term includes many types of
housing and community organizations authorized under federal law; land banks created under the Nebraska
Municipal Land Bank Act; resident-owned cooperatives; community land trusts, as defined by LB 643; and
projects that qualify under the Affordable Housing Tax Credit Act.
The DOR estimates that LB 643 would impact the General Fund revenues as follows:
LB 0643 page 2 Fiscal Note 2025
Fiscal Year General Fund revenues
FY25-26 $ 2,260,000
FY26-27 $ 5,200,000
FY27-28 $ 4,690,000
FY28-29 $ 4,470,000
LB 643 requires a one-time programming charge of $57,123 paid to the OCIO for mainframe development.
It is estimated that there will be minimal costs to the Department to implement this bill.