Nebraska Session Ends with Expanded Truth in Taxation Protections, Falls Short of Real Property Tax Reform

With the 2026 legislative session concluded, Nebraska lawmakers deserve credit for taking a meaningful step toward greater transparency and accountability in the property tax system. But while progress was made, the legislature ultimately fell short of delivering the kind of comprehensive reform needed to provide lasting relief to taxpayers. 

One of the major successes achieved this session was the passage of LB 803, legislation to strengthen Nebraska’s Truth in Taxation framework in ways that will make a real difference for taxpayers. By moving public hearings earlier in the budget process, taxpayers will now have the opportunity to weigh in before decisions are finalized. Prior to these reforms, taxpayers were often left in the dark, as the opportunity for public input often came when budgets had already been settled. 

The law also tightens limitations on property tax collection growth. When property valuations rise, local governments can no longer automatically collect more revenue without explicitly asking for it. Doing so now requires a public hearing and a two-thirds vote. That change directly addresses one of the biggest frustrations taxpayers face: rising property tax bills even when rates stay the same. 

These reforms are a strong step in the right direction. They won’t directly lower property tax bills, but they will slow the pace of growth and inject much-needed accountability into the system. Just as importantly, they lay the groundwork for future reforms by putting guardrails in place that make it harder for unchecked revenue growth to continue. 

However, transparency alone is not a substitute for structural reform. While LB 803 improves the process, it does not fully address the core driver of Nebraska’s property tax problem: the steady growth in local government spending and, by extension, total property tax collections. 

Proposals like LB 1219, which stalled in the legislature, sought to address this problem by focusing on limiting total property tax collections rather than simply adjusting rates or relying on temporary relief measures. 

Specifically, the bill caps how much more a political subdivision can collect in total property taxes compared to the previous year. Because the bill limits how fast overall property tax collections can grow, it puts downward pressure on levy rates when valuations rise. That means increases in assessed value alone cannot drive higher property tax collections, and levy rates must fall to stay within the cap. As a result, property tax bills grow more slowly and predictably, rather than automatically rising alongside property values. 

This approach recognizes a fundamental truth: as long as local governments are allowed to collect more revenue year after year, property tax bills will continue to rise, regardless of how the system is restructured on paper. 

Nebraska lawmakers made meaningful progress this session by strengthening Truth in Taxation and giving taxpayers a louder voice in the process. But the job is far from finished. With a stronger foundation now in place, the legislature should build on this momentum and pursue reforms that directly limit spending growth and deliver real, lasting property tax relief.