The purpose of this brochure is to explain Nebraska s property tax system and the roles of the state and local governments in that system. At the end of this brochure is a summary of legislative and court decisions that have shaped the property tax policies over the years. In Nebraska, property taxes are the primary funding source for the services provided by local governments. Property taxes are assessed against the taxable property in each subdivision, based upon the net-budget needs of the subdivision. The net-budget needs of the subdivision are the total budget less all other revenue sources, such as state aid, other taxes, fees or fines, or federal aid.
Property taxes are a budget driven tax.
In order to understand property tax relief efforts made by Nebraska s Governor and Legislature, it is necessary to understand how property taxes are calculated. The assessor has the responsibility of valuing all property within the county jurisdiction. Individual values are arrived at following accepted mass appraisal methods. All assessments begin with an estimate of the actual or market value of all real property and the net book value for depreciable tangible personal property. The second step is to determine the amount of revenue needed to meet the fiscal needs of each unit of government.