LINCOLN- The handful of natural disasters that Nebraska suffered this spring could lead to specific property tax relief if a storm destroyed a taxpayer's property. State Tax Commissioner James Kamm announced Friday that he is waiving penalties and interest for late tax returns and payments for those directly impacted by the Arbor Day tornadoes in eastern Nebraska. Kamm pushed the due date from April 25 to September 3.

There are 14 ZIP codes identified by the Nebraska Emergency Management Agency whose inhabitants' penalties and interest will be automatically waived if they file and pay by September 3. This is because the specified areas are most likely to have suffered significant damage. Nebraska's Department of Revenue recognized the obstacles that these natural disasters presented concerning tax responsibilities, and they expressed a desire to help. Additional relief may be provided outside of the identified areas depending on the circumstances.

Property tax relief may be offered for those whose property was destroyed by any natural disaster, but the damage must exceed 20% of the current assessed property value as determined by the county assessor. This was done to lower the value of what's standing after a disaster, resulting in less property tax. State Senator Steve Erdman recalled a story where a woman's house burnt down at the beginning of the year, the day after a property evaluation, and was still taxed on everything evaluated for that year. Sen. Erdman found this inappropriate and brought about change in 2019 with LB 512.

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