The chart above shows an obvious change beginning in the early 1990s: LB 1063 in 1992 changed the valuation methodology for taxable personal property from market value to net book value. Net book value is based on the cost basis for income tax purposes reduced by a Nebraska depreciation schedule. LB 1063 resulted in a 20 percent reduction in taxable commercial and industrial personal property valuation in 1992. Also, with the net book value approach, the valuation consistently declines, eventually to zero, regardless of the actual value of the property. Railroads, telephone companies, and pipelines own a large amount of taxable personal property, especially in relation to their ownership of real estate. Therefore this change in valuation method lowered the taxable value immediately and has slowed the growth of property taxation of this sector ever since.

Since 1990, the growth in taxation of the railroad and public service sector has been virtually the same as the rate of inflation.