Amendment 1 amended Article 13, Section 2 of the Nebraska Constitution to authorize counties and municipalities to acquire, own, develop and lease real and personal property for use by charitable nonprofit enterprises (other than property used for sectarian instruction or study or as a place for devotional activities or religious worship) and to issue revenue bonds to pay the cost of acquiring and developing or financing such property by construction, purchase or otherwise. While the revenue bonds are not obligations of the issuing governmental sub-divisions, they are expected to reduce the borrowing costs of nonprofit organizations for major developments. The bonds' principal and interest payments will be derived from the project itself. No taxes may be levied to pay for the bonds.

Nearly identical amendments were approved unanimously by the Legislature in 2002 and 2006, but were voted down in the general election in both years.

Fraser Stryker PC LLO is a leader in advising nonprofit organizations. If you would like to learn more about how we can help your nonprofit organization, please contact attorneys in Fraser Stryker's Taxation, Business & Corporate, and Nonprofit & Charitable Organizations Practice Groups.

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