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NebraskaLB749109th Legislature 1st and 2nd SessionslegislatureWALLET

Change provisions relating to the calculation of tax levies for state aid to municipalities

Sponsored By: Tony Sorrentino

Signed by Governor

Revenue Committee

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Aid cuts for low city levies

If a city's operational levy was below the prior-year average, its state aid is cut. The cut is 20% of aid for each one-cent below the average, up to an 80% cut. This rule applies only when the levy is below the average.

New method to calculate city aid

The state now uses a clear formula to set each city's aid from the Municipal Equalization Fund. Aid equals the average per-person property tax for the city’s population group times population, minus the average property tax levy times the city’s certified valuation. If the result is negative, the city gets no aid. The Department of Revenue uses last year’s Certificate of Taxes Levied and excludes debt payments for the operational levy. The Auditor must send bond and nonbond tax request amounts from the latest city budgets by February 1 each year. If the Fund lacks enough money, payments are prorated. Extra money goes to the General Fund.

Sponsors & Cosponsors

Sponsor

  • Tony Sorrentino

    legislature

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 79 • No: 0

legislature vote • 4/9/2026

Final Reading

Yes: 49 • No: 0

legislature vote • 2/10/2026

Vote

Yes: 30 • No: 0 • Other: 19

Actions Timeline

  1. Approved by Governor on April 14, 2026

    4/17/2026legislature

  2. President/Speaker signed

    4/10/2026legislature

  3. Presented to Governor on April 10, 2026

    4/10/2026legislature

  4. Passed on Final Reading 49-0-0

    4/9/2026legislature

  5. Placed on Final Reading

    3/3/2026legislature

  6. Kauth FA378 withdrawn

    2/20/2026legislature

  7. Advanced to Enrollment and Review for Engrossment

    2/20/2026legislature

  8. Placed on Select File

    2/18/2026legislature

  9. Advanced to Enrollment and Review Initial

    2/10/2026legislature

  10. Placed on General File

    1/30/2026legislature

  11. Notice of hearing for January 22, 2026

    1/14/2026legislature

  12. Referred to Revenue Committee

    1/9/2026legislature

  13. Kauth FA378 filed

    1/8/2026legislature

  14. Date of introduction

    1/7/2026legislature

Bill Text

  • Introduced

    4/17/2026

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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