Land Use & Zoning

Nebraska's Agricultural Land Valuation Act requires that farmland be assessed for property tax purposes based on:

AMarket value based on comparable sales
BCapitalized income from agricultural use (productivity)✓ Correct
CCost of improvements plus land acquisition cost
DReplacement cost of the land if converted to development

Explanation

Nebraska assesses agricultural land based on its productive capacity (income-based approach) rather than market value. This agricultural use value assessment typically results in lower taxes, protecting farmland from being taxed out of agricultural production.

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