The OpenSky Policy Institute released a report today that shows rural Nebraskans pay more property and income taxes on a per-capita basis than those living in urban areas.
Executive Director Renee Fry says, “Although income taxes paid in rural areas are lower, property taxes there are higher so that rural residents pay more when both taxes are combined.”
The report shows that using data from 2012, rural Nebraskans paid more than $1,000 more per person than their urban counterparts – a difference of nearly 40%.
The analysis shows the skyrocketing value of Nebraska’s farm and ranch land has contributed to this growing imbalance. The report shows from 2003 to 2012, agricultural land saw a 116% increase in value for tax purposes while commercial and residential property each increased 45%.
Fry noted that the tax imbalance already has created problems regarding fiscal issues like school funding.