In August, Gov. Pete Ricketts signed LB 1107 into law to create a refundable property tax credit.
The bill delivers property tax relief in two forms.
One, it puts into law a minimum level of $275 million annually for the existing Property Tax Credit Relief Fund.
Second, it creates a new refundable income tax credit based on the amount of taxpayer’s property taxes that are paid to schools.
Nebraskans can claim the tax credit this year when filing your state income tax return.
Even if you don’t owe income taxes to the state, you’ll receive a check in the amount of the credit.
The Nebraska Department of Revenue has created a tool to look up the amount of school district property taxes you’ve paid at revenue.nebraska.gov.
The credit will provide up to $125 million in property tax relief to Nebraskans in the 2020 tax year and deliver $375 million of annual relief when fully phased in.
Nebraska Department of Revenue Tax Commissioner Tony Fulton and Property Tax Administrator Ruth Sorensen joined Gov. Pete Ricketts Wednesday to explain how Nebraskans can claim the credit when preparing their state income taxes.