Sections 77-7301 to 77-7305 shall be known and may be cited as the School District Property Tax Relief Act.

The purpose of the School District Property Tax Relief Act is to provide property tax relief for property taxes levied against real property by school districts. The property tax relief will be made to owners of real property in the form of a property tax credit.

For purposes of the School District Property Tax Relief Act:

(1) School district has the same meaning as in section 79-101; and

(2) School district taxes means property taxes levied on real property in this state by a school district or multiple-district school system, excluding any property taxes levied for bonded indebtedness and any property taxes levied as a result of an override of limits on property tax levies approved by voters pursuant to section 77-3444.

(1) The School District Property Tax Relief Credit Fund is created. The fund shall only be used pursuant to the School District Property Tax Relief Act. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(2)(a) The State Treasurer shall transfer seven hundred fifty million dollars from the General Fund to the School District Property Tax Relief Credit Fund in fiscal year 2024-25, on such dates and in such amounts as directed by the budget administrator of the budget division of the Department of Administrative Services.

(b) Beginning in fiscal year 2025-26, it is the intent of the Legislature that an amount sufficient to provide the amount of property tax relief required by subdivision (1)(a) of section 77-7305 for each tax year be transferred from the General Fund to the School District Property Tax Relief Credit Fund.

(1) The School District Property Tax Relief Act shall apply to tax year 2024 and each tax year thereafter. The property tax relief shall be in the form of property tax credits which appear on property tax statements. Property tax credits granted under the act shall be credited against the amount of property taxes owed to school districts. The total amount of property tax relief granted under the act shall be determined as follows:

(a) For tax year 2024, the minimum amount of relief granted under the act shall be seven hundred fifty million dollars. For tax year 2025, the minimum amount of relief granted under the act shall be seven hundred eighty million dollars. For tax year 2026, the minimum amount of relief granted under the act shall be eight hundred eight million dollars. For tax year 2027, the minimum amount of relief granted under the act shall be eight hundred thirty-eight million dollars. For tax year 2028, the minimum amount of relief granted under the act shall be eight hundred seventy million dollars. For tax year 2029, the minimum amount of relief granted under the act shall be nine hundred two million dollars. For tax year 2030 and each tax year thereafter, the minimum amount of relief granted under the act shall be the minimum amount of relief from the prior year, excluding any additional relief provided pursuant to subdivision (1)(b) of this section, with such amount then increased by three percent; and

(b) If money is transferred to the School District Property Tax Relief Credit Fund pursuant to section 77-4602, such amount shall be added to the minimum amount required under subdivision (1)(a) of this section when determining the total amount of relief granted under the act for the tax year in which the transfer occurs. If no such transfer occurs in a given tax year, the minimum amount required under subdivision (1)(a) of this section shall be the total amount of relief granted under the act for such tax year.

(2) To determine the amount of the property tax credit for each parcel, the county treasurer shall multiply the amount disbursed to the county under subsection (4) of this section by the ratio of the school district taxes levied in the current year on the parcel to the school district taxes levied in the current year on all real property in the county. The amount so determined shall be the property tax credit for that parcel.

(3) If the real property owner qualifies for a homestead exemption under sections 77-3501 to 77-3529, the owner shall also be qualified for the property tax credit provided in this section to the extent of any remaining liability after calculation of the homestead exemption. If the property tax credit provided in this section results in a property tax liability on the homestead that is less than zero, the amount of the credit which cannot be used by the taxpayer shall be returned to the Property Tax Administrator by July 1 of the year the amount disbursed to the county was disbursed. The Property Tax Administrator shall immediately credit any funds returned under this subsection to the School District Property Tax Relief Credit Fund. Upon the return of any funds under this subsection, the county treasurer shall electronically file a report with the Property Tax Administrator, on a form prescribed by the Tax Commissioner, indicating the amount of funds distributed to each school district in the county in the year the funds were returned and the amount of unused credits returned.

(4) The amount disbursed to each county under this section shall be equal to the amount available for disbursement under subsection (1) of this section multiplied by the ratio of the school district taxes levied in the prior year on all real property in the county to the school district taxes levied in the prior year on all real property in the state. By September 15, 2024, and by September 15 of each year thereafter, the Property Tax Administrator shall determine the amount to be disbursed under this subsection to each county and shall certify such amounts to the State Treasurer and to each county. The disbursements to the counties shall occur in two equal payments, the first on or before January 31 and the second on or before April 1.

(5) After retaining one percent of the amount received under subsection (4) of this section for costs, the county treasurer shall disburse the remaining funds, which are credited against the amount of property taxes owed to school districts, in the same manner as if such funds had been received in the form of property tax payments for property taxes owed to school districts, meaning any amounts attributable to divided taxes pursuant to section 18-2147 of the Community Development Law shall be remitted to the applicable authority for which such taxes were divided.

(6) The School District Property Tax Relief Credit Fund shall be used for purposes of making the disbursements to counties required under subsection (4) of this section.