All Roll Calls
Yes: 715 • No: 55
NebraskaLB1114109th Legislature 1st and 2nd SessionslegislatureWALLET
Adopt the Community Improvement District Act and the New Taxpayer Recruitment Grant Act, authorize community improvement districts to levy property taxes, and change provisions related to the Community Development Law, the Municipal Inland Port Authority Act, extraterritorial jurisdiction, sanitary and improvement districts, housing authorities, housing agencies, the Nebraska Housing Agency Act, and the Local Option Municipal Economic Development Act
Sponsored By: Urban Affairs Committee
Signed by Governor
Urban Affairs Committee
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Bill Overview
Analyzed Economic Effects
26 provisions identified: 9 benefits, 2 costs, 15 mixed.
Tax break for Medicaid care facilities
For‑profit nursing and assisted‑living facilities that house Medicaid patients get a property tax exemption. The exemption equals the facility’s three‑year average Medicaid bed share times the property tax that would otherwise be due.
Student housing tax break narrowed
For a charity’s approved student housing building, only the commons areas remain exempt from property tax. Shared rooms and cooking and eating spaces are exempt; the rest of the building is taxable.
More low income housing in metro cities
When a metropolitan city uses divided property taxes for housing, it must try to put at least 30% of those funds into single‑family housing each year. The city must give first priority to projects that are financially viable and serve the lowest‑income people for the longest time. The housing agency must also take complaints online, by phone, or in person, acknowledge them within 5 business days, give a case number, and aim to resolve them in 14 days or explain delays. The agency must report complaint counts at every board meeting.
Cash incentives to move to Nebraska
Households can apply for a relocation incentive if they live outside Nebraska when they apply and make at least $55,000 a year. Applications must list all household members and include contact info, the last four digits of a Social Security number, and work and income records. If you receive an incentive, you must provide information needed for twice‑a‑year program reports.
Administrators take over troubled CIDs
When a CID defaults or has no working board, major bondholders, most landowners, a board majority, certain resident lessees, or the city/village can ask a court to step in. A court can send the CID to the city or village to appoint an administrator, appoint trustees, call elections, or order needed taxes and assessments. The city or village must appoint an administrator within 60 days or file a written reason. The administrator can levy a separate administration tax and must be paid at least $500 per month plus expenses. Anyone with an interest can later ask the court to end the administrator if conditions improve. A court‑approved plan can also settle or restructure CID debts.
How to merge, shrink, or end CIDs
A CID can add land if owners of at least 50% of the area petition for annexation; annexed parcels then owe future CID taxes and assessments. Detachment or dissolution needs formal notice and a hearing, and owners representing a majority of the district or a city/village can block it. No detachment or dissolution is allowed while debt is outstanding unless all creditors consent in writing. Two CIDs can merge if notice rules are met and no timely opposition is filed; the surviving CID takes all assets and debts. If your land lies in two CIDs, the districts must meet to resolve it or a court will decide and adjust debt.
New CID taxes and bond rules
Community improvement districts (CIDs) can levy their own property tax up to the rate set by local ordinance. That CID levy does not count against the city’s normal levy caps. CIDs may issue bonds for up to 30 years, with the first principal payment due within 5 years and at least 20% repaid within 10 years. Each year, the CID must levy enough tax, with its sinking fund, to pay bond interest and principal. Money from special assessments and connection charges goes into a sinking fund for the projects and interest only. Before issuing debt, the board may publish a notice that opens a 30‑day window to challenge the legality of the proceedings. Counties and cities also exclude CIDs from their levy‑limit pooling, which can shift taxes within the area.
New rules for special assessments
A CID can charge project costs to properties it finds specially benefited. Owners can block a proposed assessment if a petition signed by owners of a majority of the front footage is filed within 3 days before the hearing. Assessments are due in 50 days with no interest; after that, interest follows CID warrant rates rounded up to the next 0.5%. You can pay in yearly installments for up to 20 years; late installments add 2% to the prior rate, and three missed payments can make the full balance due. Even exempt property must pay an amount equal to any special benefit. The clerk must certify new levies to the county 11–20 days after the levy.
Forming CIDs and their tax powers
Property owners can form a community improvement district (CID) if a majority sign the articles. The articles must state a maximum levy per $100 of taxable value. A CID can levy property taxes and make contracts to build and maintain public infrastructure. The levy cap can be changed if the board and a majority of owners propose it and the city or village approves it after hearings and notices.
Affordable housing and blight area limits
Affordable housing now includes workforce housing, homes for households under 150% of county median income, and federal low‑income housing tax credit projects. Cities face caps on how much area they can label as blighted: metro, primary, and first‑class cities up to 35%; second‑class up to 50%; villages up to 100%. Former defense sites, “good life district” areas, and extremely blighted areas do not count against those caps.
How CID leaders are chosen or removed
CID boards have five trustees with two‑year terms. Elections use mail ballots sent at least 20 days before the vote; ballots must arrive by 5 p.m. on election day. Voters can recall trustees; a petition needs assigned signatures equaling 35% of the highest vote total from the last election. If a CID fails to function or meet duties, a court can suspend the board, appoint an administrator or trustees, order needed taxes, or call a special election. When an administrator is appointed, the administrator runs the CID and trustee powers are suspended.
Limits on CID land and assessments
A CID cannot hold more than 10 acres unless used for a public purpose. If extra land is not used within 3 years, it must be sold at public auction. A CID also cannot impose redevelopment special assessments unless the city or village board approves by resolution first.
More local help for housing, childcare
In first‑ and second‑class cities and villages, businesses that mainly build or fix housing or run early childhood care now qualify for local economic development help. Cities may also use local development funds to pay staff or hire contractors to run the program or write an affordable housing action plan.
Limits on city bankruptcy with pensions
Cities and villages cannot authorize Chapter 9 bankruptcy unless their pension funded ratio meets set levels: 51.65% (2020–2022), 54.41% (2023–2025), 58.21% (2026–2028), 63.41% (2029–2031), 70.71% (2032–2034), 80.61% (2035–2037), and 90% after 2038. Before voting to file, they must get an actuarial valuation within 90 days. The actuary must belong to the American Academy of Actuaries and meet its qualification standards.
Redevelopment allowed at former defense sites
A city can include a former defense site in a redevelopment plan even if the land is outside city limits. The site must be in the same county and inside a sanitary and improvement district. The city must pass an ordinance stating it plans to annex later, and any city with zoning power over the site must consent. Utility service areas do not change unless the provider agrees.
Tax breaks for inland port authorities
Inland port authorities do not pay most state or local taxes or assessments. They still owe workers’ compensation assessments and employment‑security combined taxes or payments in lieu of taxes. Port authority bonds, the interest on them, and income from their proceeds are tax‑exempt. This does not cover inheritance or gift taxes, or taxes on transfers. Property a port authority leases can be exempt from property tax under Nebraska’s property tax exemption law.
Stricter test for quick redevelopment review
To use expedited review, the building or vacant platted lot must have been inside the city or its extraterritorial zoning area for at least 60 years, not 25. The plan must include only one project and be in a substandard and blighted area. The county must have fewer than 100,000 people, and the finished assessed value must stay within the law’s caps.
CID operating costs and buyer disclosures
CID leaders must post bonds: $5,000 for the chair and $20,000 for the clerk and administrator; the CID pays the premiums. Each CID must file an annual statement by December 31; late fees are $10 per day up to $300. Sellers or brokers must give the latest statement to buyers and get a signed acknowledgment. The CID pays the full cost of trustee elections when billed. CIDs cannot buy electricity and resell it.
Forming a CID: who counts
How to count a majority of owners depends on zoning. For commercial or industrial land, count acres; for residential, count lots or condo units; for agricultural, include all owners; for mixed areas, count acres and lots equally and include agricultural owners. Also, a city or village cannot approve a CID unless all properties are inside city limits.
CID assessments: fewer tax-sale risks
County tax bills no longer must include a notice about special assessments from CIDs or SIDs. These assessments are not automatically included in county tax sales or foreclosures unless the county already offered them for sale or the district asks. This lowers surprise foreclosure risk from those assessments.
Redevelopment projects: caps, deadlines, small fee
For expedited redevelopment, the authority’s debt is capped at the lesser of agreed project costs or taxes expected over 15 years. Projects approved for expedited review must finish within two years; the assessor must certify completion and value before tax‑division money pays debt. If no redevelopment valuation exists, the assessor sets it and owners or the authority have 30 days to protest. A small application fee (up to $50) applies to expedited review. The tax‑division does not start until the project land is inside the city or its extraterritorial zoning area, except for formerly used defense sites.
Fair bidding rules for CID projects
CID contracts over $50,000 must go to the lowest responsible bidder after at least 20 days’ public notice, but the board can reject all bids. Bid notices must run the same day each week for two weeks, and each bid must include a certified check or bond of at least 5% of the engineer’s estimate. If a contractor submits required records and gives written notice of completion, the CID owes interest on retained amounts and the final payment starting 20 days after completion, unless it objects within 20 days.
Older state statutes repealed
The law repeals the specific Nebraska statutes listed in the Act. Those sections are no longer in force.
Community improvement districts can refinance debt
Community improvement districts can negotiate and settle what they owe on bonds and other debts. They can cut principal or lower interest to reach a deal. They may issue new bonds or warrants to swap with holders or sell to raise cash. A district court must approve the legality and validity of any new debt. The district treasurer pays money as the court‑approved deal requires.
Metro cities power in nearby areas
Metropolitan cities can use some powers in their extraterritorial zoning areas. These include levying taxes or special assessments, licensing animals, and charging for sidewalk or tree work as special assessments. The rules apply only inside the city’s designated extraterritorial zoning area.
Rules for local taxpayer recruitment grants
Cities, tribes, and certain nonprofits can apply starting July 15 each fiscal year, with first‑come review and notice within 30 days if funds are available. Grants are capped at $250,000 per applicant per year. Applicants must cover at least 20% of program costs; local funds, federal funds, donations, or in‑kind help can meet the match. The Department pays 50% at award and the rest after half the household goal is met. A dedicated cash fund finances awards, and the Department sets rules.
Sponsors & Cosponsors
Sponsor
Urban Affairs Committee
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 35 • No: 0 • Other: 14
legislature vote • 4/24/2026
Vote
Yes: 44 • No: 0 • Other: 5
legislature vote • 4/24/2026
Vote
Yes: 41 • No: 2 • Other: 6
legislature vote • 4/24/2026
Vote
Yes: 25 • No: 1 • Other: 23
legislature vote • 4/24/2026
Vote
Yes: 44 • No: 0 • Other: 5
legislature vote • 4/24/2026
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 4/24/2026
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 4/24/2026
Vote
Yes: 15 • No: 15 • Other: 19
legislature vote • 4/24/2026
Vote
Yes: 27 • No: 0 • Other: 22
legislature vote • 4/10/2026
Final Reading
Yes: 48 • No: 1
legislature vote • 4/7/2026
Vote
Yes: 44 • No: 0 • Other: 5
legislature vote • 4/7/2026
Vote
Yes: 25 • No: 1 • Other: 23
legislature vote • 4/7/2026
Vote
Yes: 21 • No: 18 • Other: 10
legislature vote • 4/7/2026
Vote
Yes: 41 • No: 2 • Other: 6
legislature vote • 4/7/2026
Vote
Yes: 44 • No: 0 • Other: 5
legislature vote • 4/7/2026
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 3/20/2026
Vote
Yes: 15 • No: 15 • Other: 19
legislature vote • 3/20/2026
Vote
Yes: 27 • No: 0 • Other: 22
legislature vote • 3/20/2026
Vote
Yes: 35 • No: 0 • Other: 14
legislature vote • 3/20/2026
Vote
Yes: 32 • No: 0 • Other: 17
legislature vote • 3/20/2026
Vote
Yes: 38 • No: 0 • Other: 11
Actions Timeline
Presented to Governor on April 10, 2026
4/17/2026legislatureApproved by Governor on April 16, 2026
4/17/2026legislatureDispensing of reading at large approved
4/10/2026legislaturePassed on Final Reading with Emergency Clause 48-1-0
4/10/2026legislaturePresident/Speaker signed
4/10/2026legislaturePlaced on Final Reading with ST91
4/8/2026legislatureEnrollment and Review ST91 filed
4/8/2026legislatureEnrollment and Review ST91 recorded
4/8/2026legislatureEnrollment and Review ER160 adopted
4/7/2026legislatureKauth FA773 withdrawn
4/7/2026legislatureHallstrom FA1142 withdrawn
4/7/2026legislatureHallstrom AM3082 to AM2838 filed
4/7/2026legislatureHallstrom AM3082 adopted
4/7/2026legislatureMcKinney AM2838 lost
4/7/2026legislatureMcKinney MO565 Reconsider the vote taken on AM2838 filed
4/7/2026legislatureMcKinney MO565 prevailed
4/7/2026legislatureMcKinney FA1178 to AM2838 filed
4/7/2026legislatureMcKinney FA1178 adopted
4/7/2026legislatureMcKinney AM2838 adopted
4/7/2026legislatureBallard AM2913 adopted
4/7/2026legislatureMcKinney FA1145 withdrawn
4/7/2026legislatureAdvanced to Enrollment and Review for Engrossment
4/7/2026legislatureBallard AM2913 filed
4/1/2026legislatureHallstrom FA1142 to AM2838 filed
4/1/2026legislatureMcKinney FA1145 filed
4/1/2026legislature
Bill Text
Introduced
4/17/2026
Enrolled / Slip Law
Final / Enacted