LB512: New Nebraska State Law Provides for Property Tax Relief Along with New Filing Requirements for Corporations and Partnerships

Nebraska Governor Pete Ricketts signed LB512 – Change revenue and taxation provisions into law on May 31, 2019. It was signed with two other bills to provide property tax relief to Nebraskans.

LB512 provides property tax relief to Nebraskans who suffer damage to real property as a result of a natural disaster such as a flood, fire or tornado.  Under normal circumstances, property is assessed for tax purposes on January 1 each year.  However, LB512 allows taxpayers to report property damage occurring after January 1 and before July 1 in order to obtain a revised assessment that takes the damage into account.  So long as the damage exceeds 20% of the assessed value for the current tax year, the property’s value will be lowered to reflect the damage.

“In March, Nebraskans experienced the most widespread natural disaster in state history,” said Governor Ricketts.  “LB512 will help Nebraskans who are working to get back on their feet as the state rebuilds bigger and better than ever before.”

The Legislature passed LB512 without opposition, and it is now in effect.

Nebraskans who have experienced significant property damage due to a natural disaster in 2019 should fill out a Report of Destroyed Real Property.  This report, Form 425, is available by clicking here and must be completed by July 15, 2019.

In addition, LB 512 changed the language as to when S Corps, LLCs and partnerships must file a Nebraska income tax return. Under the old law, S Corps, LLCs and partnerships were only required to file a Nebraska income tax return if they had nonresident owners and were apportioning income. The new law requires all S Corps, LLCs and partnerships to file a Nebraska return if there is income derived from Nebraska sources.

Going forward, all Nebraska businesses should plan to file a Nebraska income tax return.

Not sure where to start? To get the full benefit of lessening the impact taxes will have on your business in 2019, the time to start is now. See what we can do for you. Start here.

CATEGORIES: Tax, Audit & Accounting
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