LB310: Modernize and Reduce Nebraska’s Inheritance Tax

Introduced on January 12, 2021
Status: Assigned To Committee

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Summary

The Platte Institute will provide testimony in support of LB310. Nebraska is one of only six states that levies an inheritance tax and one of only two states that tax children and grandchildren who receive inheritances from their parents or grandparents. Because the tax was created in 1901, many of its provisions are in need of modernization, including the relatively low amount of property value that is subject to tax. Nebraska’s top 18% inheritance tax rate on non-relatives and distant relatives is also the country’s highest tax rate. LB310 would reduce the county-collected inheritance tax rate and increase the amount of property that is exempt from the tax for lineal heirs from $40,000 to $150,000. The exemption amount would then gradually increase in future years. The tax rates for non-lineal heirs and non-relatives would also be gradually reduced by roughly half, while increasing exemption amounts gradually in the future years.

CLICK HERE TO VISIT THE NEBRASKA LEGISLATURE WEBSITE TO SUBMIT WRITTEN COMMENT ABOUT LB310.

Last Action

LB310 will be heard by the Revenue Committee on Thursday, February 18, 2021 at 9:30 a.m. Click here to view a livestream of the hearing.