Nebraska, Lancaster County property taxes among highest in study
By NANCY HICKS and MATT OLBERDING / Lincoln Journal Star
Think your property taxes are high? They are, according to a study released Tuesday based on a national survey.
Nebraska has the second highest average tax bill on homes in the nation, when the tax is measured as a percentage of home values, according to the study by the Tax Foundation.
The state ranks a little lower on other methods of measuring the property tax bite for a home owner, but still in the top 20.
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Nebraska’s three largest counties also ranked in the top quarter of 788 high population counties in comparisons of property taxes on homes.
Lancaster County ranked 57th on median property taxes paid as a percentage of home value.
The county’s median home tax bill of $2,716, was 1.9 percent of the median home price of $143,700, based on data collected in 2007. (The median in the halfway point between the highest and lowest tax bills.)
“It’s disturbing but not surprising,” said Omaha state Sen. Tom White about the study.
As an historically agricultural state, owning more land in Nebraska meant you would have more income and could afford to pay more taxes on that property, White said.
That direct correlation is no longer always true, he said.
White said his constituents tell him, “If I’m making more money, I can pay more income taxes. If I’m not making as much money, I can stay out of the store (thus avoiding sales taxes). But I’m completely at their mercy on property taxes.”
The study also doesn’t reflect a state property tax credit, which reduced all property taxes, not just on homes, by about 8 percent.
Gov. Dave Heineman pointed to that two-year property tax credit, provided by state senators and the governor, as one way to reduce the property tax burden.
But he also pointed out the responsibility of local elected leaders.
“Local units of government have to control their spending,” he said.
“Just as we (state government) held spending to 4.5 percent, local units of government have to control their spending.
Property tax is used to pay for local services; the property tax rates are set by local governments, including school boards, city councils and county boards. About 60 percent of local property taxes goes to help pay for local schools.
State government relies on income and sales taxes.
Two years ago, White offered a different property tax credit, focused on owner-occupied homes only, but it failed to get out of the Revenue Committee.
White said he is considering several other options to help control property tax growth, including requiring a unified hearing on all property taxes in the county.
The Tax Foundation bills itself as a nonpartisan, nonprofit organization that monitors fiscal policy at the federal, state and local levels.
Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com. Reach Matt Olberding at 473-2647 or molberding@journalstar.com.

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Macy wrote on September 24, 2008 9:35 am:
Perfert time. wrote on September 24, 2008 9:35 am:
Taxed wrote on September 24, 2008 9:37 am:
really wrote on September 24, 2008 9:38 am:
moving away after lifetime wrote on September 24, 2008 9:46 am:
Hold your rants... wrote on September 24, 2008 9:52 am:
I agree wrote on September 24, 2008 10:04 am:
Chris wrote on September 24, 2008 10:05 am:
jo gale wrote on September 24, 2008 10:05 am:
So... wrote on September 24, 2008 10:07 am:
Dave wrote on September 24, 2008 10:13 am:
Hmmm... wrote on September 24, 2008 10:17 am:
The real answer...... wrote on September 24, 2008 10:26 am:
I agree with what you're saying. The 3 state universities we can't afford. Education at those schools are a joke compared to private schools here in Nebraska. Nebraska Wesleyan ranked #78 and Doane ranked #59 in Forbes as some of the best colleges in American. Princeton being #1. It was based on the quality of the education and how much the students acheived. Yes Wesleyan is $25,000 a year and Doane the same. The money is worth every penny!!! If you want a "degree" go to UNL, if you want an "education" go to Nebraska Wesleyan or Doane. "
Go For it wrote on September 24, 2008 10:31 am:
Nebraskan wrote on September 24, 2008 10:38 am:
Steve wrote on September 24, 2008 10:41 am:
joe wrote on September 24, 2008 10:41 am:
Comm UnSense wrote on September 24, 2008 10:51 am:
Pat wrote on September 24, 2008 10:54 am:
Really wrote on September 24, 2008 11:00 am:
If Nebraskans actually got what we paid for, superior schools and above average city, county, and state services, I'd gladly not feel cheated and happily pay. But the schools continue to beg for more money and the products of these schools are no better educated than less taxed areas. The cities, counties and state in general certainly aren't paving my street with gold and in fact rarely can even plow my street in a timely manner.
This is a primary reason after our marriage you'll find 2 more houses in Nebraska for sale and two more college educated professionals leaving "the good life."" "
Out-of-state wrote on September 24, 2008 11:17 am:
ted wrote on September 24, 2008 11:18 am:
Nina wrote on September 24, 2008 11:22 am:
Scott wrote on September 24, 2008 11:23 am:
Joni wrote on September 24, 2008 11:25 am:
Funny Nebraskans wrote on September 24, 2008 11:29 am:
Go ahead and move to L.A. and get a bigger house for less taxes!! It's all relative people, but I won't waste time trying to explain it. "
Knowledge wrote on September 24, 2008 11:29 am:
GRAD wrote on September 24, 2008 11:33 am:
NWU & Doane are ranked in the list of Private Libral Arts Colleges...Princeton is not in that category and is therefore not at the top of that list.
UNL, UNK, UNO, Wayne, Chadron, etc. are all public universities...they would not be on that same list "
Ralph wrote on September 24, 2008 11:35 am:
Not News - Thats The Problem wrote on September 24, 2008 11:39 am:
Think the County Board is going to offset that cost by cutting spending somewhere else? Think again.
Wake up people - vote for someone new in November. "
Outside the Box wrote on September 24, 2008 11:40 am:
Assuming you find jobs that pay the same and the other costs of living are the same, you'll still likely spend at least $1000 coming back here to visit your "entire family". "
Jonathan wrote on September 24, 2008 11:47 am:
to Pat wrote on September 24, 2008 11:52 am:
Kerry wrote on September 24, 2008 11:52 am:
DBR wrote on September 24, 2008 11:55 am:
I agree with nebraskan wrote on September 24, 2008 12:01 pm:
Gee wrote on September 24, 2008 12:29 pm:
Roger wrote on September 24, 2008 12:30 pm:
Really wrote on September 24, 2008 12:52 pm:
Buddha wrote on September 24, 2008 12:54 pm:
Lincoln Taxpayer wrote on September 24, 2008 12:57 pm:
Funny... wrote on September 24, 2008 1:06 pm:
GET A GRIP wrote on September 24, 2008 1:12 pm:
Cost of Living wrote on September 24, 2008 1:29 pm:
Calf Homeowner wrote on September 24, 2008 1:38 pm:
Answer my WHY wrote on September 24, 2008 1:38 pm:
Why wrote on September 24, 2008 1:42 pm:
crazy wrote on September 24, 2008 2:03 pm:
We need to branch out into different incomes. The people that say we have to keep our moral values straight and not allow gambling are the same people who drive to South Dakota, Kansas and Iowa to gamble. Look at towns like Denton with Keno. That town is spending that revenue on itself and it shows!
We have very little in tourism revenue but yet we turn down having the college baseball hall of fame in Omaha and almost pass on doing what needs to be done to keep the Series itself. What do we expect?
LPS upper management is out of control. I knew a recent grad who looked for a teaching job in Lincoln but went to Kansas to teach because they pay more. Just don't lump all Nebraska schools in with LPS. Want to see a school that seriously needs help, go to Raymond Central. Just because you don't have a kid in the schools doesn't mean you shouldn't want to invest in the future.
I still love living here. Maybe all these opinions should be directed to our elected officials. "
col wrote on September 24, 2008 2:19 pm:
Troy at UNL wrote on September 24, 2008 2:50 pm:
parent wrote on September 24, 2008 3:12 pm:
Stranger wrote on September 24, 2008 3:46 pm:
Eugene, OR - A: 1.2%, B:1.3%
Knoxville, TN - A:0.9%, B:1.1%
Kansas City, MO - A: 1.1% B:1.1%
Des Moines, IA - A: 1.6%, B:1.7%
Sioux Falls, SD - A:1.4%, B:1.5%
Minneapolis, MN - A:0.8%, B:1.0%
Columbia, MO - A: 0.9%, B:0.9%
Colorado Springs, CO - A:0.4%, B:0.4%
Oklahoma City, OK - A:0.9%, B:0.8%
Rexingon, KY - A:0.8%, B:0.7%
Omaha, NE - A:1.7%, B:1.7%
Lincoln, NE - A:1.8%, B:1.9% "
TexasHusker wrote on September 24, 2008 4:24 pm:
You people do realize... wrote on September 24, 2008 4:33 pm:
our nrd wrote on September 24, 2008 5:15 pm:
Stuck in Nebraska wrote on September 24, 2008 5:53 pm:
Chris wrote on September 24, 2008 6:17 pm:
Nebraska has relatively low property values, yet attempts to pay the same wages to employees. High rates are inevitable.
A better study would be to compare Dollar amounts of property taxes to income, which would an include an element regarding to the ability to pay taxes.
Further, Nebraska has a sparser population which will result in higher tax rates.
Of course, everyone will complain ad nauseum about the high taxes. They don't know what they are talking about because they are viewing the issue with the wrong frame of reference. "
Chris wrote on September 24, 2008 6:25 pm:
Thank you. No one will read what you wrote, or take it to heart, but they should. People in Lincoln have no idea what they have here. Go ahead and move to the "middle south". Schools are infinitely better here, among many other quality of life indicators. People are too busy complaining to realize this community is a bargain. Even Omaha pays nearly 50% more in property tax rates than Lincoln, and their valuation is only marginally lower. "
gale wrote on September 24, 2008 6:28 pm:
great point, i love the sarcasm unfortunately the brain washed Ditto Heads won't get it. "
julia wrote on September 24, 2008 7:11 pm:
Dana wrote on September 24, 2008 9:17 pm:
whatever wrote on September 24, 2008 9:33 pm:
Julie wrote on September 24, 2008 9:35 pm:
Tired of LPS nay sayers wrote on September 24, 2008 9:48 pm:
Orey K wrote on September 25, 2008 4:37 am:
Couldnt be more red wrote on September 25, 2008 6:01 am:
the problem is wrote on September 25, 2008 6:13 am:
Reality Check wrote on September 25, 2008 7:53 am:
How dumb wrote on September 25, 2008 11:00 am:
Cmon wrote on September 25, 2008 2:47 pm:
Ned wrote on September 25, 2008 3:50 pm:
Stingier wrote on September 25, 2008 5:15 pm:
Cali V. Nebr wrote on September 25, 2008 7:34 pm:
I am an RN, and I make about $45K a year here in Nebraska, in California I had a job offer at $98K.
Plus, you also have to factor in where you are living, Ocean vs prarie, things to do vs nothing to do.
A lot of people go to California every year for vaction, Nebraska is not at the top of the vaction destination list. "
To Cal v. Nebr wrote on September 25, 2008 10:32 pm: