Tax credit is early Christmas present for property owners

LINCOLN -- The real estate tax statement you received in the mail recently includes a present from state lawmakers and the governor.

In the top right-hand corner of Lancaster County statements are the words “Tax Credit Amount” and beside it is an amount.

That amount is the direct property tax relief provided this year. It’s $83.22 per $100,000 valuation.

Property taxes are a local tax, set by local governments like the school board and the city council to operate local services.

The money to pay for the tax credit comes from state income and sales tax revenue.

Last legislative session the governor and the Unicameral agreed to use part of a state tax surplus to pay for a two-year property tax credit.

Next year the credit should be even larger -- 10 percent more -- according to Catherine Lang, deputy tax commissioner.

The Legislature set aside $105 million for the tax credit program for this year and $115 million for next year.