Nebraska

Property Classification:

In Nebraska, taxable property is divided into two classes: (1) residential property; (2) personal property; and (3) agricultural property (Neb. Rev. Stat. §77-201).

Agricultural and horticultural property is tax-favored in two ways:

1. it is valued by reference to the market prices of other agricultural property rather than in comparison to land priced at a premium for residential or commercial pursuits and

2. it is then assessed at 75% of market value or actual value.

Definition of agricultural land and horticultural land:

Agricultural land and horticultural land means land which is primarily used for the production of "agricultural or horticultural products," including wasteland lying in or adjacent to and in common ownership or management with land used for the production of agricultural or horticultural products.

Land retained or protected for future agricultural or horticultural uses under a conservation easement as provided in the Conservation and Preservation Easement Act shall be defined as agricultural land or horticultural land. Land encumbered by an easement under the Wetlands Reserve Program cannot be used for agricultural or horticultural purposes and therefore cannot be characterized as agricultural or horticultural land and must be valued at its actual value.

Land enrolled in a federal or state program in which payments are received for removing such land from agricultural or horticultural production shall be defined as agricultural land or horticultural land.

Land that is zoned predominantly for purposes other than agricultural or horticultural use shall not be assessed as agricultural land or horticultural land.

Definition of agricultural or horticultural products:

Agricultural or horticultural products shall mean grain and feed crops; forages and sod crops; animal production, including breeding, feeding, or grazing of cattle, horses, swine, sheep, goats, bees, or poultry; and fruits, vegetables, flowers, seeds, grasses, trees, timber, and other horticultural crops.

Timberland and Forestland is land which is wooded by nature or humans and consisting of a dense growth of trees and underbrush such that it is not suitable for grazing.

Agricultural or horticultural special valuation (also known as "greenbelt")

The special valuation assessment provides for a taxable value based solely on seventy-five (75) percent of the actual value of land for agricultural or horticultural purposes or uses, without regard to the actual value the land might have for other purposes or uses, allowing persons wishing to continue to engage in agriculture as a livelihood, from being forced to discontinue their agricultural endeavors as a result of excessive tax burdens. It is also recognized that special valuation assessment reduces the value base for property tax purposes.

The land must be agricultural or horticultural land. Eligibility shall be determined annually as of January 1. However, the land must remain eligible the entire year in order to retain the special valuation assessment for that year. To remain eligible in succeeding years the land must continue to be agricultural or horticultural land. An approved application will remain in effect until such time as the land becomes disqualified pursuant to REG-11-006.

The initiation of special valuation assessment is dependent on the filing of an application for special valuation assessment by the applicant or authorized representative of the applicant. If the land qualifies for the special valuation assessment pursuant to REG-11-003, the assessor shall approve the application.

Application for the special valuation assessment shall be submitted to the assessor on or before June 30. The application shall be made on the Special Valuation Application, Form 456, prescribed by the Tax Commissioner and supplied by the assessor. The assessor upon receiving an application and necessary documentation as required pursuant to REG11-004.08, shall verify the information as to the status of the applicant and the eligibility of the land pursuant to the criteria in REG-11-003.01.

The assessor shall annually determine the special valuation assessment. The information shall be based upon sales of similar classes or subclasses of agricultural land and horticultural land from agricultural and horticultural areas in which actual value is not subject to influences by other purposes and uses. The assessor shall capitalize net cash rent to determine a valuation based on the earnings of the property from the agricultural or horticultural use only. The valuation indicated by such an income capitalization approach shall be used as the special valuation if the market comparison approach results in a value that reflects a value influenced by purposes and uses other than agricultural or horticultural. Where the differences between the market comparison approach and income capitalization approach is more than a mere difference of opinion the assessor must determine which value most accurately reflects the property’s value for agricultural or horticultural purposes.

It is the duty of the applicant, the applicant’s agent, guardian or the conservator, or executor of the applicant’s estate, to notify the assessor of any change in the status of the land, which will disqualify it from receiving the special valuation assessment. It shall be the duty of the assessor to continually verify, throughout the year, that all properties listed for the special valuation assessment continue to qualify and apply the recapture valuation assessment through tax year 2008, to any properties which are no longer eligible.

If eligibility for the special valuation assessment is lost in 2009 or any year thereafter, the land will remain assessed at its special valuation assessment for that year. In the years following the year of ineligibility the land shall be assessed according to its classification pursuant to Neb. Rev. Stat. Section 77-201.

Agricultural and Horticultural Land Manual

The Department of Property Assessment and Taxation is responsible for developing and updating the Nebraska Agricultural and Horticultural Land Valuation Manual according to the laws of the state of Nebraska. The method of classifying agricultural or horticultural land contained in the manual shall be the sole method for the classification of such land.

The state of Nebraska does not have a severance or yield tax on timber or timber products.

Nebraska Department of Revenue. Agricultural and horticultural land special valuation. https://revenue.nebraska.gov/PAD/real-property