Nebraska Budget

[Mavric]

 

 

Just from my small experience with the state budget/funding over the last couple years is that the drop in ag commodities and then the drop in ag land valuations is reeking havoc on budgets. I'm not an expert on how it's all calculated. But, the drop in ag land prices has completely thrown off the state funding of schools. So, no, the state doesn't collect property taxes. But, some of their major funding to local communities is based on what the community can expect to get from property taxes.

 

I guess I'm not sure I follow you. I think you are confusing commodity prices with land prices. Commodity prices have dropped significantly in the last couple years. But land prices have not dropped significantly. Perhaps moderately but not nearly to the extent that commodity prices have. Plus there is usually a delayed effect in how fast land valuations track actual selling prices. So I don't think that land valuations - which drive property taxes - have had much of an effect on state and municipal budgets so far.

 

No, I'm not confusing the issue.

 

Commodity prices have dropped which greatly affects income taxes. This is all the way from farmers to community businesses to large companies who sell into the ag industry.

 

It wasn't that long ago that we were seeing land sold for 10,000-12,000 per acre. Now, that is down to around 7,000-8,000. This has decreased the ability for counties to increase the land tax value. On top of that, because farmers aren't selling corn at 7.00, communities have not been able to increase their tax on land to off set drops in funding from the state.

 

This is way more complicated of an issue to completely spell it all out here and I am by far not an expert in the issue.

 

However, my main point is, land and commodity prices have had an issue on the state budget....more than any tax cuts that have been implemented at the state level.

 

Yes, land is not selling like it used to. But there is a difference between being unable to increase and actually decreasing. I don't think there has been a decrease in land valuations (to any significant extent). So land prices have not really had an effect on decreasing local or state revenues.

 

Decreasing commodity prices definitely has had an effect on state revenues both directly and indirectly.

 

And I still don't agree that land prices have much of any impact at the state level. Indirectly to some extent but not directly.