Two Petitions - One Property Tax Solution
The Apple Tax Plan proposes a comprehensive restructuring of the state’s property tax system to provide significant relief to property owners while ensuring sustainable funding for public education. This plan aims to amend state law to reduce the taxable valuation of all property types and to improve the funding model for public school teachers.
Amendment of State Statute 77-201
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Currently, Nebraska’s state statute 77-201 mandates that real (residential and commercial) properties be taxed at full market value, while agricultural and horticultural properties are taxed at 75% of market value.
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The AFAN’s Apple Tax Plan proposes reducing the taxable valuation for all property types to 50% of their market value. Specifically:
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Real properties: Taxable at 50% of market value (down from 100%).
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Agricultural and horticultural properties: Taxable at 37.5% of market value (down from 75%).
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This change would result in an immediate reduction in property taxes for all Nebraskans, offering substantial relief to homeowners, businesses, and agricultural producers.
Better Local Funding Balance
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This new funding system is designed to ensure that a majority of school funding is directly tied to teacher salaries and student needs, significantly reducing reliance on local property taxes for operational expenses.
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Teacher Base Salary: The state will provide base funding of $50,000 per year for every public-school teacher, (“teacher” as defined in statute 79-101(9)). This ensures that teachers across the state receive a stable, competitive salary, supporting current teacher salaries at a base rate and attracting new talent. This state funding goes directly to the school system to cover this base salary component.
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​Teachers absolutely remain local employees of their public school district. This plan does not centralize employment; it centralizes the funding mechanism for the base salary. The state fulfills its constitutional obligation to fund education by providing the block grant to the local district, which then pays the teacher. Local control and local employment are maintained.​
State Funding for Teachers
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New State Quarterly Block Grant Funding for Public Education (Tied to Teachers & Student Needs):
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Eliminate reliance on "equalization aid" for only a subset of districts, moving towards a system where all 245 Nebraska school districts receive foundational state support directly linked to their core educational mission: supporting teachers and meeting student needs.
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Teacher Base Salary: The state will provide base funding of $50,000 per year for every public-school teacher, (“teacher” as defined in statute 79-101(9)). This ensures that teachers across the state receive a stable, competitive salary, supporting current teacher salaries at a base rate and attracting new talent. This state funding goes directly to the school system to cover this base salary component.
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Student Needs-Based Allocation: Continuation of foundation aid for each district - $1500 for K-12 students plus $900 for pre-K students.
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Economic Growth: Lower property taxes will create a more business-friendly environment, encouraging investment and economic development in Nebraska.
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​The economic stimulus of putting an estimated $2.6 billion dollars back into the pockets of Nebraskans will also generate nearly $150 million in sales tax revenue, creating a powerful multiplier effect that will revitalize local communities and businesses. This new economic growth will help local governments find new revenue streams.
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​Many households budget carefully for property tax payments. When that cost is significantly reduced, a larger portion of that freed-up money is likely to be spent on goods and services, especially for lower and middle-income households who tend to have a higher MPC. They may use it to pay down debt, make home improvements, purchase big-ticket items, or simply increase everyday spending.
