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Dear Cedar Bluffs Families,
Remind your 6-12 student that they are going to a ROCK concert Monday. We have the rock band “Gooding”
that will be at the school Monday, performing a live concert at 1pm. Part of that concert features a financial
literacy message geared to reach middle and high school students. You can find out more about this band at:
https://www.goodingmusic.com/for-good/financial-literacy-tour/
So last year you may have read my newsletters regarding property tax relief and funding for Public Schools in
Nebraska. Nebraska ranks 43rd in funding Public Education in the Nation. Last year there was a legislative
proposal (LB 890) that would have made Nebraska a top 25 State in public school funding. It included a half cent
sales tax increase and would have used the money that was set aside in the property tax relief fund (LB 1107) that
was created in 2020, pre-covid, to fund public schools. Although ever school would have received additional
State funding, allowing that school to lower its levy and thereby pass along that saving to its tax paying property
holders, the legislation failed. One of the main reasons it failed was the influx of money, from Federal dollars
infused into Nebraska economy as well as the significant savings that occurred while things were shut down
during COVID. The State spent less, so the State’s savings grew. The original property tax relief fund (LB 1107)
was set to return about 6% to property tax holders, but because the influx of money the State of Nebraska was
able to increase the relief to roughly 25% of the taxes you paid for school and community college property taxes.
Although LB 890 would have been a long-term solution to property tax relief, it on average was only going to
return between 10-14% depending upon your school district. Who wouldn’t want 25% instead of 10-14%, so
another legislation LB873 that made the property tax relief fund more permanent passed while LB890 failed.
The reason I highlight this now, is Governor Ricketts held a press conference this week indicating that only 60%
of taxpayers actually received that tax relief, mostly because its complicated. Taxpayers are required to apply for
this tax relief and there are different forms, for different years. And you must use a website lookup tool to find
how much you can request in tax relief because the refund only applies to taxes paid to public schools and
community colleges. The taxes you paid for cities, counties or other political subdivisions are not included. So
the “school” taxes you paid in 2020, if you applied, could be refunded at 6% while you were doing your 2020
taxes in April of 2021, if you remember to apply for it. And when you did your 2021 taxes in April of 2022, you
could have gotten 25% of your 2021 “school” taxes refunded. Most people pay property taxes throughout the
year, most people have it as part of their home mortgage loan and it goes into an escrow and taxes are paid out of
that escrow twice a year, and then when you file your taxes you have to ask for a refund of what you have already
paid. Seems complicated instead of just passing legislation (LB890) which would have given schools more money
and thus would have reduced how much you pay in taxes originally. Oh well, this is what we are stuck with. If
you want more information about how to get property tax relief by applying to the fund go to:
https://revenue.nebraska.gov/about/nebraska-property-tax-credit. According to Ricketts, there so much money
left that this year when people apply, they can get 30% back, of the money you have already paid, but just to
“schools”. If you remember! #Wildcat Pride!