By Scout Nelson
The Nebraska Department of Revenue has reported a notable 11.2 percent increase in the taxable value of agricultural land over the past year. This uptick is part of an ongoing trend, marking the fourth consecutive year of increases, following a 6.3 percent rise in 2023.
This consistent growth contrasts with the rises in residential and commercial property values, which saw increases of 9.2 percent and 7.7 percent respectively. The total real property value in Nebraska grew by 9.6 percent.
Knox and Pierce Counties recorded the most substantial growth in agricultural land values, each with increases exceeding 25 percent. Hamilton and Dakota Counties followed closely with increases of 24 percent and 21 percent respectively. Blaine, Box Butte, Cass, and Cheyenne Counties experienced slight reductions of less than one percent.
The escalation in land values aligns with national trends reported by the USDA Economic Research Service and the Department of Agricultural Economics at the University of Nebraska-Lincoln.
These reports show significant rises in land values over the recent years, forecasting continued double-digit growth into the next year.
Residential property values also saw significant changes, with Hooker, Cherry, and Johnson Counties experiencing the highest increases, notably impacted by existing residences as new growth had minimal influence on the overall value increase. In contrast, Clay, Sioux, and Lancaster Counties recorded the smallest rises.
There has been a strong correlation between changes in taxable values and property taxes, with a correlation coefficient of .82 indicating a strong, positive relationship since 1993.
As taxable values have risen on average by 6.5 percent annually since then, and taxes by 4.7 percent, it is likely that property owners will face higher taxes due to these increased valuations.
This trend underscores the direct impact of rising land values on the financial obligations of property owners in Nebraska.
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Categories: Nebraska, Business, Government & Policy