Budget & Taxes (Revenue)

This bill amends Nebraska's School District Property Tax Relief Act by changing how state tax revenue is distributed between two funds. It establishes a formula to determine whether excess tax revenue goes to the Cash Reserve Fund or the School District Property Tax Relief Credit Fund, based on comparisons between actual and estimated state tax collections. The bill specifically mandates increasing annual transfers from the General Fund to the School District Property Tax Relief Credit Fund, starting with $750 million in 2024-25 and growing to $902 million by 2029-30, with future years increasing by 3% annually. These transfers directly fund property tax credits for homeowners in school districts, reducing their annual tax burden.

LB 50 changes how revenue from Nebraska's nameplate capacity tax on renewable energy facilities is distributed. Five percent of the tax revenue will go directly to the community college in the area where the renewable energy facility (like wind or solar farms) is located. The remaining revenue will be distributed to local governments (cities, counties) that would have collected property taxes on the facility if it weren't exempt, calculated based on each government's share of typical property tax revenue. This distribution continues until the facility's equipment is sold or removed, and the tax revenue cannot be redirected to the state General Fund.