PREPARED BY: John Wiemer
LB 81 DATE PREPARED: February 24, 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 $4,524,842
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $4,524,842 See Below See Below
Any Fiscal Notes received from state agencies and political su bdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 81 amends the Nebraska Property Tax Incentive Act.
The bill defines the allowable growth percentage to mean the percentage increase, if any, in th e total assessed value of all real property
in the state from the prior year to the current year as determined by the Department of Revenue (DOR).
The bills provides that for taxable years beginning or deemed to begin during calendar year 2024, t he DOR shall set the credit
percentage, for the refundable school district tax credit under the Act, so that the total amount of credits for such taxable years shall be
the maximum amount of credits allowed in the prior year increased by the allowable grow th percentage.
The bill contains the emergency clause.
The DOR estimates the following decrease to General Fund revenues as a result of the bill:
• FY25: ($101,934,000)
• FY26: ($503,298,000)
• FY27: ($31,854,000)
• FY28: $0
DOR estimates a one-time programming charge of $112,942 to be paid to the Office of the Chief Information Officer (OCIO) as a result
of the bill. Additionally, the DOR estimates a need for 98 SOS teammates in FY26 for a total of $4,411,900 to handle the increase in
amended returns and answer questions from taxpayers regarding the credit.
The timing of the passage of this bill could impact the revenue loss in FY25 with the need for the DOR to set-up the requirements to
implement the bill . For example, any revenue loss not realized in FY25 wo uld occur in FY26. The total revenue loss estimated by the
DOR as a result of this bill would still occur.
LB 0081 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 02/24/2025 Phone: 471-5896
FY 2024-2025 FY 2025-2026 FY 2026-2027
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $(101,934,000) $4,524,842 $(503,298,000) $(31,854,000)
Cash Funds
Federal Funds
Other Funds
Total Funds $(101,934,000) $4,524,842 $(503,298,000) $(31,854,000)
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…………………………………………………………………………………………………. $4,524,842
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………...
Capital Improvements…………………………………………………………………………………………...
Total……………………………………………………………………………………………………………. $4,524,842
LB 81 amends the Property Tax Incentive Act to allow the refundable credit for school district property taxes
paid for tax years beginning in calendar year 2024. For the 2024 tax year, the Department of Revenue (DOR)
must set the credit percentage, so the total amount of school district property tax credits is the maximum amount
of credits allowed in the prior year increased by the allowable growth percentage.
LB 81 defines allowable growth percentage as the percentage increase, if any, in the total assessed value of all
real property in the State from the prior year to the current year, as determined by the DOR .
The estimated fiscal impact of LB 81 to the General Fund revenues would be as follows:
General Fund
revenue
FY2024-25 $ (101,934,000)
FY2025-26 $ (503,298,000)
FY2026-27 $ (31,854,000)
FY2027-28 $ -
Note that the fiscal impact assumes that the majority of taxpayers will have to file amended returns to claim the
credit since it will take time for software and implementation updates. Given this will likely be a slow process, the majority of the refunds will take place during FY25- 26.
LB 81 will require a one-time programming charge of $112,942 paid to the OCIO for mainframe and web
development costs. Since most if not all taxpayers will likely have to file amended returns for the credit, the DOR
will need to hire a total of 98 SOS teammates to handles all the amended returns and answer question from
taxpayers with respect to this credit. The total cost of the SOS teammates is $4,411,900.