|
On Friday, April 17, the Nebraska Legislature adjourned sine die after sixty legislative days. A total of 167 bills were presented to the Governor; five were vetoed, and one became law without his signature.
Among the bills enacted were LB1067, which increases the State Documentary Stamp Tax by $1.00 per $1,000 of value from July 17, 2026, through January 1, 2032; LB1139, which updates the process for liens on real property related to child and spousal support orders; and LB938, the First-Time Homebuyer Savings Account Act, designed to help Nebraskans save for down payments and closing costs.
LB1067, introduced by Senator Hallstrom, originally proposed a $1.50 increase to the documentary stamp tax, with $0.75 allocated to the Rural Workforce Housing Fund and $0.75 to the Middle Income Housing Fund. These funds were established in 2017 and 2020 to support housing development in Nebraska. Initially funded through a General Fund appropriation, they reflected the Legislature’s commitment to addressing housing needs. However, both funds, along with the Affordable Housing Trust Fund, have since been subject to legislative “sweeps” back into the General Fund.
The Nebraska REALTORS® Association supports efforts to address housing affordability but opposed LB1067 due to the increased tax burden on sellers, which can hinder real estate activity. While proponents argued the bill included safeguards against future fund sweeps, the Association maintained that without a constitutional amendment, those protections could be reversed by future legislatures, leaving the funds vulnerable. Thank you to everyone who talked to their Senator and participated in the Call for Action!
Following feedback, the Revenue Committee amended LB1067 by reducing the proposed increase to $1.00 ($0.50 to the Rural Workforce Housing Fund and $0.50 to the Middle Income Housing Fund) and adding a five-year sunset. The five-year sunset was drawn from another bill that originally proposed a 10-year extension of the programs. At the request of Nebraska REALTORS®, the timeframe was shortened to five years to allow for more frequent evaluation, recognizing that housing needs and market conditions continue to evolve. The Legislature ultimately adopted both the reduced tax increase and the five-year sunset.
Additionally, the Legislature approved a measure directing that funds from the Affordable Housing Trust Fund, Middle Income Housing Fund, and Rural Workforce Housing Fund be administered by the Nebraska Investment Finance Authority (NIFA) through the Department of Economic Development. NIFA requested this change, citing its ability to improve the deployment of funds and address ongoing concerns that allocated dollars were not being fully utilized, one of the primary criticisms of these programs.
Over the next several weeks, the Nebraska REALTORS® Association will be sharing additional updates on more legislative changes coming your way.
| 
