Municipalities face new property tax rate adjustments amid valuation changes

The Lincoln Budget Board meeting on February 25, 2025, spotlighted significant changes in property tax rates linked to recent real estate valuations. Board members discussed a 3.02% increase in the tax levy, yet noted a decrease in estimated tax rates, suggesting that rising property values are influencing these shifts.

A key point raised was the state-mandated requirement for municipalities to conduct full property reevaluations every nine years, with statistical updates at the third and sixth years. This legislation, enacted in 1997, places the financial responsibility for these reevaluations on local communities, although the state provides reimbursement for the costs. The first statistical update is fully reimbursed, while subsequent updates receive partial funding, which decreases over time.

This discussion underscores the ongoing adjustments in local tax structures as property values fluctuate, highlighting the importance of regular reevaluations in maintaining fair tax rates. As the board continues to navigate these changes, residents can expect further updates on how these financial decisions will impact their property taxes moving forward.