LINCOLN — Nebraska ranch- and farmland owners will get a little more money off of their property taxes this year, while other property owners will get a little less.
State Department of Revenue officials announced Thursday that the property tax credit for agricultural land will be $105.56 for every $100,000 of taxable value.
The credit for residential and business property will be $87.95 for every $100,000 taxable value. The differing credit levels means the owner of a $150,000 house will get $131.93 subtracted from his or her tax bill.
A farmer owning property valued at 10 times as much, or $1,500,000 of ag land, would get $1,583.40 subtracted.
The tax credit for all types of property last year was $89.57 for every $100,000 of taxable value.
The property tax credit program began in 2007, with a budget of $105 million. State lawmakers and the governor have raised the fund in past years.
Lawmakers last year approved a $20 million addition to the fund, bringing the total to $224 million.
The additional money was earmarked for ag land property tax credits. The increase was a partial answer to concerns about the steep rise in ag land valuations over the past decade.
Money for property tax credits comes from state sales and income tax payments. The credits appear as a line on the annual property tax statement.
The property tax credit does not alter property tax levies, which are set by school boards and other local governments.
Rather, the credit reduces the amount of tax that homeowners and other property holders have to pay.
Individual property tax bills are determined by the spending of local schools and other government subdivisions, the valuation of the person’s property and the valuation of all other properties in each subdivision.