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Nebraska property taxes are the ninth highest in the United States. Nebraska ranks 41st in terms of property taxes (a smaller number means lower property taxes, while a higher number means high- er property taxes). By comparison, Missouri ranks 7th, Colorado is 14th, Kansas is 20th, South Dako- ta is 22nd, Iowa is 35th, and Wyoming is 39th. So Nebraska property taxes are high both regionally and nationally.
Nebraska sales taxes are the ninth-lowest, and both state income taxes and total state taxes are in the middle. Property taxes account for 38% of total state and local tax collections in Nebraska, the highest of any tax. Sales taxes are 29% of total tax collections, and income taxes are 26%. Homeowners pay 47% of Nebraska property taxes; farmers and ranchers pay 29% and commerce and industry pay 17%. If property taxes, sales taxes and income taxes were equalized as sources of state and local revenue, property taxes would need to be reduced over $600 million.
Sixty percent of Nebraska property taxes go to K- 12 education funding. Nebraska state school aid is the second-lowest in the U.S., while the local share of K-12 school spending is the second-highest. Nebraska property taxes on agricultural land historically have been high relative to other states as a percent of net farm income. Since 1950, Nebraska property taxes on agricultural land have been 46% higher than the United States average. In 2017 agricultural property taxes paid were 47% of Nebras- ka net farm income. When other taxes are taken into account, this means that most Nebraska farmers or ranchers were paying 50-60% of their net farm income in taxes.