Economic Tidbits

Taxes on Agricultural Land Steady

Property taxes levied on agricultural land equaled $1.146 billion in 2021, down slightly (0.33 percent) from taxes levied in 2020. The decline marks the fourth consecutive year agricultural land taxes were less than the prior year. Taxes are down 4.5 percent since reaching a high of $1.201 billion in 2016. Taxes levied on farm buildings and farm sites last year increased 7.3 percent or $4 million. And taxes levied on agricultural machinery and equipment were up 4.5 percent, totaling $46.1 million.

Figure 2 compares the annual percentage changes in taxes on agricultural land, residential property, commercial property, and total taxes between 2012-2021. The three real property sectors account for 92 percent of property taxes levied in 2021. Over the past decade, taxes on agricultural land rose 64 percent with most of the growth occurring prior to 2016, particularly in 2013 and 2014 when taxes grew more than 15 percent. Growth in taxes levied on agricultural land averaged 5 percent since 2011. Taxes levied on residential property grew 52 percent, or 4.25 percent per year on average, and taxes levied on commercial property increased 48 percent with an average increase of 4 percent.  

Figure 2. Annual Percentage Changes in Property Taxes, 2012-2021

Source: NEFB graphic based on Nebraska Department of Revenue data

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