In 1967 the State of Nebraska officially withdrew from the property tax field. With the enactment of LB 377, Nebraska changed from a property tax to a combined sales and income tax as a source of revenue. Property taxes are now collected only by local subdivisions. However, the state still performs duties related to the property tax in two important areas: the state must value certain centrally assessed property such as railroads, public utilities, and airlines, and fix a uniform rate of valuation throughout the state. Centrally assessed properties are valued by the Nebraska Board of Equalization. Although this task generally arouses little controversy, the Board must also insure that all properties in the state are assessed uniformly. Therein lies the problem. Achieving uniform assessment has proven to be not only politically unpopular but practically impossible.
Stanley M. Talcott,
Property Tax Equalization and Assessment: A Proposal for Reform,
50 Neb. L. Rev. 103
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