LR 464

LR464  LR464
2026  2026
                                 ONE HUNDRED NINTH LEGISLATURE
                                          SECOND SESSION
                      LEGISLATIVE RESOLUTION 464
Introduced by Conrad, 46.
PURPOSE:      The purpose of this resolution is to propose an interim study to
explore the potential for a de minimis property tax exemption.
      The study shall include, but not be limited to, an examination of the
following questions:
      (1) What is the economic purpose of a de minimis property tax exemption
for tangible personal property and why have other states pursued them?
      (2)    What    percentage    of    property   tax    revenue   from    tangible   personal
property is derived from the top one, five, ten, and twenty percent of personal
property return filers?
      (3) What exemption levels would be necessary to exempt eighty, ninety,
ninety-five, or ninety-nine percent of personal property return filers?
      (4) What is the administrative cost to county governments for processing
low-dollar tangible personal property returns? What is the cost of processing
tangible personal property returns with less than fifty dollars of reported
liability? What is the cost of processing the lowest eighty or ninety percent
of   personal     property   returns     compared   to    property   tax    revenue   from   those
returns?
      (5)   How     does   the   cost    of   administering   low-dollar     personal   property
returns     compare   to   the    cost   of   administering   high-value     personal   property
returns?
      (6) What is the personal property tax compliance cost ratio for small
businesses, representing how much they spend complying with personal property
returns versus their actual liability?
      (7) What de minimis exemptions have been adopted by other states, what are
the reported revenue implications, and what percentage of potential personal
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LR464  LR464
2026  2026
property taxpayers do they exempt?
    (8)   What    are   the   best   practices   to   avoid   tax   cliffs   and   eliminate
compliance costs for small business taxpayers?
    (9) What design considerations are necessary for successful implementation
of a de minimis property tax exemption for tangible personal property?
    (10) How should revenue losses associated with a de minimis property tax
exemption for tangible personal property be addressed, and should any state
reimbursement be net of reduced county administrative costs?
    NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE ONE HUNDRED NINTH
LEGISLATURE OF NEBRASKA, SECOND SESSION:
    1. That the Revenue Committee of the Legislature shall be designated to
conduct an interim study to carry out the purposes of this resolution.
    2. That the committee shall upon the conclusion of its study make a report
of its findings, together with its recommendations, to the Legislative Council
or Legislature.
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