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First District State Senator Lavon Heidemann introduced legislation last week that seeks to decrease the valuation of agricultural land for school taxation purposes.
Under the bill – LB 1061 – the valuation would decrease from 75-percent to 65-percent over a five-year period. The valuation would remain at 75-percent for other political subdivisions, such as counties and natural resources districts.
Senator Heidemann explains the rationale behind his proposal. (play audio :38)
There are more “non-equalized” school districts in the state of Nebraska in recent years. Those are school districts that do not qualify for state equalization aid because their resources – primarily as a result of land valuation in the district – are greater than their needs. Heidemann calls the increase in the number of non-equalized districts “alarming.” (play audio :25)
Heidemann says his legislation would reverse the trend and allow some districts to regain their equalization status.
LB 1061 was introduced last week in the legislature’s Revenue Committee.
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