Nebraska Expands Property Tax Relief for Older Homeowners
By: Source: AARP.org Date Posted: 2006-06-21 12:05:58.887307-04:00
Thanks to AARP Nebraska's dogged advocacy efforts in the 2006 legislative session, many older homeowners on fixed incomes will now benefit from a larger break on their property taxes. On April 5, Nebraska Gov. Dave Heineman signed into law a revenue package that significantly expands property tax relief to limited-income older and disabled homeowners.
"Legislative Bill 968 (LB968) makes important changes to the homestead exemption program," said Mark Intermill, associate state director for advocacy. "The bill lessens the property tax burden on low-income seniors who might otherwise be forced out of their homes due to high taxes."
LB 968 increases the amount of home value that an eligible person is allowed to exempt from property taxation. It also allows more people to file for a homestead exemption by increasing the maximum home value that is eligible for an exemption.
The change will help offset increasing property taxes that have been driven by rising valuations. Improving the homestead tax exemption to keep up with rising property values has been a top legislative priority for AARP Nebraska since 2004. Intermill and AARP volunteer Robert Courtney spearheaded and led the three-year effort with State Sen. Jeanne Combs to reform the program. The changes will take effect in 2007.
Intermill continued: "For the first time, the legislation also provides a refundable state earned income tax credit to low-wage earners between the ages of 25 and 65. AARP Nebraska strongly supports this provision to assist Nebraska's working poor and their families."
On other legislation, AARP Nebraska successfully supported passage of the Long-Term Savings Plan Act sponsored by State Sen. Jim Jensen. Under the bill, Nebraskans can establish tax-exempt Long-Term Care Savings Plans to help pay for long-term care expenses. Contributions up to $2,000 per year for a married couple filing jointly and $1,000 for all other returns can be deducted on state income tax returns.
AARP Nebraska endorsed changes sought by State Sen. Dennis Byars to assist caregivers with the expense of transporting their loved ones. Under the measure signed into law, the state will now reimburse certain family caregivers for mileage. That will save the state about $1 million annually on costs for taxi service and other modes of transport.
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