Bill > LB749

This bill amends existing state law to change how state aid is calculated for municipalities, specifically affecting the calculation of tax levies used for this aid. The current law uses the average property tax levy for operational purposes, excluding debt payments, to determine state aid. The Department of Revenue uses prior year tax information to calculate these levies. Municipalities receive aid based on a formula that considers their population and property tax base, with provisions for reducing aid if a municipality's levy is significantly lower than the average, and a mechanism for prorating aid if the available funds are insufficient. This bill proposes to repeal the original section of law and replace it with these updated provisions, meaning the method for calculating these tax levies for state aid purposes will be altered.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=62948