Tornados and the Destroyed Property Law

One of the most important bills that I ever introduced in my career as a Nebraska State Senator was my destroyed property bill, originally LB 482. The contents of that bill were later amended into LB 512 and passed as a Christmas Tree bill back in 2019. The bill enables landowners with destroyed or damaged properties to have their valuations readjusted for property tax purposes, provided that the damage exceeds 20 percent of the property’s value during the current assessment year and the paperwork gets filed by the deadline of July 15th of the current assessment year.

No one who has had their property destroyed or damaged mid-year should have to pay property taxes based upon the assessment of their property on January 1 of that same year. So, this law makes the property tax system fair for those who may be suffering from such things as tornado, food, or fire damage.

The timing of my destroyed property bill back in 2019 could not have been better. That year Nebraska experienced widespread flooding and many Nebraskans saw their homes and other structures get washed out by the floodwaters. Because LB 512 passed with an emergency clause, the law went into effect immediately after the governor signed it on May 30, 2019. Consequently, many landowners were able to take immediate advantage of the new law and have their destroyed or damaged properties re-evaluated for property tax purposes, saving some people thousands of dollars in taxes.

We have a similar situation occurring again this year. The high winds, hail, and tornadoes which have swept across Nebraska this spring have resulted in many properties being destroyed. Consequently, landowners need to be reminded of the new law, so they can file the necessary paperwork and have their destroyed or damaged properties readjusted before the deadline of July 15. The property valuation readjustment applies only to properties that were destroyed or damaged prior to July 1.

In order to take advantage of the new destroyed or damaged property law, landowners will need to fill out and submit a Report of Destroyed Real Property, which is available on the Nebraska Department of Revenue’s website: http://www.revenue.nebraska.gov. Once at the website, click on “Property Assessment” and scroll down to “Forms & Calendars”. Click on “Forms,” then click on “Real Property and Personal Property”. Form 425 will be the tenth form from the top of the list.

Form 425 must be filed with both the County Clerk and the Assessor/Register of Deeds, and separate forms must be filed for each parcel of destroyed real property. Additional questions should be directed to the County Clerk’s Office or the Assessor/Register of Deeds Office.

The bill that I introduced which paved the way for property owners to have their destroyed or damaged properties revaluated for property tax purposes is what I like to call, “common sense legislation.” The Unicameral Legislature passes a lot of legislation. Most of those bills never affect the average person, but the bills that make life better for Nebraskans are, by far, the most important and the most valuable.

It is my hope that many landowners with destroyed or damaged properties will take advantage of the destroyed property law this year. It is bad enough to have a home wiped out by a tornado, washed away in a flood, or burned to the ground by a wildfire. My heart and my prayers truly go out to those who have suffered such loses this year. As Nebraskans, let us be reminded to help our neighbors during times of crisis because, after all, it is the people of Nebraska who make Nebraska the Good Life.