Property tax relief approved

More retirees would be eligible for property tax relief under a bill passed by the Legislature March 27.

LB986, introduced by the Revenue Committee, changes the Nebraska homestead exemption program by increasing the maximum eligible income from $28,500 to $46,900 for partial exemptions to married claimants older than 65. The maximum eligible income for partial exemptions to single claimants older than 65 is increased from $24,200 to $39,500.

The percentage of tax relief provided under the homestead exemption will now decrease by 10 percent at each income level instead of 15 percent, so as one’s income increases, a smaller portion of the exemption is lost.

The Nebraska homestead exemption program gives property tax relief to homeowners who are more than 65 years old or who are totally disabled veterans or their surviving spouses. The bill incorporates provisions of LB850, introduced by Syracuse Sen. Dan Watermeier, which also allow qualified individuals with developmental disabilities to apply for the homestead exemption.

Senators passed the bill on a 43-0 vote.