Bill Summary, LB 613 (1995)


LB 613 changes a number of property tax “lid” provisions.  First, current Nebraska law permits a governing body to increase its anticipated aggregate property tax receipts more than the amount permitted under the section 77-3438 property tax lid by the percentage change in the Consumer Price Index (All Urban Consumers), up to a maximum of 5 percent per year.  LB 613 would reduce this five-percent limitation to four percent.


Second, LB 613 permits counties, municipalities, and community colleges to increase-upon an affirmative vote of a majority of the governing body-the anticipated aggregate receipts from property taxes by the amount necessary to comply with a final order, judgment, ruling, or award of the Industrial Relations Commission.  However, such a vote must be taken at a public meeting of the governing body following a special public hearing called for the purpose of receiving testimony on the proposed increase.


Third, the bill permits any public body which decides not to increase its anticipated aggregate property tax receipts to its authorized level for the fiscal year to carry forward unused amounts for use in future fiscal years.  However, the governing body must calculate the amount of such unused anticipated aggregate property tax receipts and must include the calculation in the budget documents submitted to the Auditor of Public Accounts.


Fourth, LB 613 reduces from 4 percent to 3 percent the basic allowable growth rate for general fund school district expenditures (other than special education expenditures).


Fifth, LB 613 reduces school districts’ allowable growth “range” to 3-5.5 percent.  (Formerly, the range was 4-6.5 percent.)


Sixth, the property tax lids and exemptions prescribed in sections 77-3437 to 77-3440 which were to terminate on July 1, 1995, will continue.


Also, LB 613 requires the aggregate taxable value of depreciable livestock to be excluded from the 1995 personal property tax valuation base for the purpose of determining the amount of allowable growth.  Depreciable livestock is no longer subject to personal property taxation in Nebraska under Laws 1994, LB 961.


Finally, LB 613 extends beyond the 1994-95 school fiscal year the directive that the general fund budget expenditures of a school district may not exceed the district’s general fund budget expenditures adopted for the immediately preceding school fiscal year, unless a 75-percent majority of the school board votes to exceed that limitation.  Prior to passage of LB 613, this directive was only in effect through the 1994-95 school fiscal year.


LB 613 passed with the emergency clause 36-11 and was approved by the Governor on June 13, 1995.