Gov. Ricketts, Sen. Smith Propose Tax Reform Framework with the Nebraska Property Tax Cuts and Opportunity Act
Taylor Gage, 402-471-1970
Luke Robson, 402-471-1967
LINCOLN – Today, Governor Pete Ricketts unveiled the Nebraska Property Tax Relief and Opportunity Act. The Act, also known as LB947, was proposed by Revenue Committee Chairman Jim Smith following the Governor’s annual State of the State address.
“Tax reform is a key priority to grow Nebraska,” said Governor Ricketts. “Over the years together, we have done the hard work needed to hold the line on taxes, but Nebraskans need more and expect more. The Nebraska Property Tax Cuts and Opportunity Act will serve as a framework that can help deliver tax relief for hardworking Nebraskans. Tax relief will need to be a bipartisan effort, and it will be something we come together to do to grow the entire state.”
“The Nebraska Property Tax Relief and Opportunity Act provides much-needed relief to Nebraska’s families, ag producers, and job creators,” said Senator Jim Smith. “The Governor and I look forward to continued dialogue with senators as we work to get tax reform done this session.”
The Nebraska Property Tax Relief and Opportunity Act has three major components:
- Tax Reform that Puts Property Tax Relief and Working Nebraskans First: First, the Act restructures existing property tax credits as a new refundable credit on state taxes, which ensures that Nebraskans—not out-of-state landowners—receive the credits.
- The Tax Foundation ranks Nebraska’s property taxes as 11th highest in the nation, which is the worst among surrounding states.
- The Act provides for additional relief in future years when our budget is growing. Over the next 10 years, we expect this would provide over $4 billion in property tax relief for ag producers and homeowners.
- The Act focuses the relief on the average Nebraska homeowner by capping the amount of relief a homeowner can receive. The cap rises over time as relief grows.
- Tax Reform that Creates More Opportunities: The Act uses existing tax credits to achieve a permanent reduction in the state’s uncompetitive individual and corporate income tax rates.
- The only surrounding state with an income tax higher than ours is Iowa.
- This will provide relief for our families and small businesses. Right now, 90 percent of individual income taxes paid by Nebraskans are at that top individual rate, and 90 percent of Nebraska businesses pay at the top individual rate.
- Our neighboring states are making themselves more competitive. Right now, Iowa Governor Kim Reynolds and their Legislature are lowering their taxes. Missouri just lowered their tax rates this month.
- New Investment to Develop Nebraska’s Workforce: The Act provides for an additional $10 million over two years for workforce development.
- Job training funds are key for helping Nebraska’s workforce keep pace with an ever-changing economy. Right now, the state has no job training funds in the state’s traditional programs.