Posts Tagged ‘real estate tax’

Nebraska Property Tax – Why is it so High? What are you paying for?

Friday, April 23rd, 2010

One of the biggest concerns for people moving into Nebraska from out of state is the high property taxes. Many current Nebraska residents even consider property taxes a huge burden and the excessive costs are often considered unreasonable.

The biggest question is why? Why are Nebraska’s property taxes so much higher than everywhere else?

Essentially, towns collect most of their operating revenue from property taxes and, therefore, establish a local rate, determining the tax levy.

Just to give you an idea of the Omaha property taxes, a $146,000 home, which was recently sold, will include a yearly payment of $3,258 per year in property taxes. And a $200,000 home in West Omaha has a yearly property tax of $4052.88 attached. In Council Bluffs, Iowa, a similar $200,000 home would cost around $500 less per year in property taxes.

In comparison, a house on the North Fork of Long Island in the Town of Riverhead, priced at $200,000, would have an approximate $3,705 property tax. Meaning, you will pay around $300 less per year in taxes for a home on the coast.

The catch here, however, is that in on Long Island, $200,000 would get you something equivalent to a tool shed. The cost of living is certainly a factor when purchasing a home. You’d have to consider how much more or less the market value of the home is, what your cost of groceries would be and even the possible cost of insurance.

The question of “why?” still remains. Consider the services you receive from the town in which you live. Are you satisfied with the fire department, community colleges, school districts and the work of your town employees? Essentially, this is what your high property taxes pay for.