As property valuations continue to rise across Nebraska, it is important to remember that increases in valuation directly impact the amount of property tax revenue generated by an existing levy rate. In simple terms, when valuations increase, maintaining the same levy will generally result in the collection of more tax dollars from taxpayers.
Elected officials at all levels of government, including members of the Legislature, have a responsibility to ensure the tax burden they impose on their constituents is not greater than needed to fund essential government services.This commitment is often tested by policies and events outside of our control. Low commodity prices, extreme drought, and historic fires are events that, taken individually, can significantly impact government resources, spending, and the ability of taxpayers to absorb an existing, not to mention higher, tax burden. Together, these events create an extraordinary challenge for the people we are entrusted to serve.
Under Nebraska law, political subdivisions are expected to carefully review and adjust their levy rates each year to ensure that tax requests remain consistent with actual budgetary needs and statutory limitations. The levy should not simply remain unchanged when valuations rise if doing so would generate revenue beyond what is reasonably necessary for operations, reserves, and authorized expenditures.
