Nebraska Attorney General joins call for Treasury to prevent “unconstitutional” tax restrictions
A letter signed by 21 state Attorneys General, including Nebraska, was sent to Treasury Secretary Janet Yellen explaining their concern over the unconstitutionality of restrictions regarding the indirect use of COVID-19 relief funds. In section 9901 of the American Rescue Plan Act (ARPA), there is a provision that forbids states from using the COVID-19 funds...
Federal plan may pull the strings on Nebraska’s tax system
President Biden signed the American Rescue Plan Act of 2021 (ARPA) into law shortly after its passage in Congress on March 11. While the plan is overwhelmingly popular with the American people, there is a small provision in the legislation causing some uncertainty and concern for Nebraska. Under ARPA, states are eligible to receive a...
Strong February revenues are indicator for tax modernization
Nebraska’s state tax revenues have posted strong positions just one year after the historic nationwide shutdown for the COVID-19 pandemic. According to the most recent Nebraska Department of Revenue news release, gross revenues for the month of February were $617 million or 24.2% above the certified forecast. However, the bigger surprise is that net revenues...
Nebraska Forecasting Board shows optimism with increased projected state revenues
The Nebraska Revenue Forecasting Board met today to discuss the status of the state’s revenue picture. This year the state of Nebraska will be drafting its two-year, or biennial, budget and will need an accurate forecast of state revenues. Overall, the mood of the meeting was very optimistic. On a national scene, Nebraska is recovering...
Colorado’s Democratic governor proposes ending property taxes on business equipment
Colorado’s Democratic Gov. Jared Polis presented his State of the State address this week. In the speech, Polis proposed to make his state the latest to scrap personal property taxes on business equipment. A proposal moving in the same general direction is being considered this session in Montana, where the exemption would be doubled to...
Nebraska is one of only six states that levies an inheritance tax, but senators in both parties are working on ways to reduce the burden on families and businesses. Jim Vokal and Sarah Curry discuss a new report on one of Nebraska’s least understood taxes. Resources mentioned in this episode: Death and Taxes: Nebraska’s Inheritance...
Executive Summary Nebraska has been seeking ways to modernize its tax code for several years, and unfortunately, the inheritance tax has often been left out of the analysis. The inheritance tax is a worthy subject for tax modernization and reform because only six states continue to have this tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey,...
Inheritance taxes can cancel the dreams of Nebraskans and newcomers
Do you remember Bless This Mess? The ABC sitcom took place in the fictional town of Bucksnort, Nebraska, and was canceled after two seasons. I started watching, thinking someday it might inspire an article. Here goes. While the show found its detractors, I stuck around for its Parks and Rec-like zaniness. It follows urban millennials...
Nebraska netted $453 million in taxes in January, annual revenues higher than before pandemic
Nebraska’s January state tax revenue report was released this morning and it shows a very strong picture for the Cornhusker State, despite some in Washington continuing to claim that states need more federal aid. January net receipts were $453 million. That is 19.1% above the forecast. Net Sales and Use: 14.5% above forecast Net Individual...
Poll shows Nebraskans favor more action on property taxes
Revenue Committee Chair Sen. Lou Ann Linehan is beginning to set an agenda for tax modernization in the 2021 Legislature. In a news release from her legislative office, the Elkhorn-area senator pointed to a recent Tax Foundation report that provides backing for a number of policy ideas her colleagues have introduced, including requiring voter approval...
Nebraska posting strong revenues in nationwide study of pandemic impact
Nebraska has posted strong state tax revenues during the pandemic, yet many in Washington D.C. keep calling for more state aid. Is Nebraska an outlier or are other states doing as well as the Cornhusker State? According to data collected and published by the Reason Foundation, the revenue shortfalls for state and local governments are...
Rural states are keeping a closer eye on business equipment taxes
Last year, agriculture groups warmly received the Nebraska Legislature’s passage of a major tax package providing income tax credits for school property taxes paid on real estate, like homes, buildings, and farmland. Less reported, though, is that to help pay for the change, the Unicameral also ended a different type of property tax relief impacting...
A transparency proposal in the Legislature would prevent taxpayers from being blindsided by local property tax increases, and give them more of a voice in the process that decides their tax bill. You can find more free tips and resources about Truth in Taxation at PlatteInstitute.org/Truth. Nebraska Truth in Taxation Resource Page
Iowa advances bill to repeal inheritance tax while Nebraska focuses on reform
Bill introduction has ended for the 2021 Nebraska Legislature, and two bills were filed to reform Nebraska’s antiquated, and increasingly uncommon, inheritance tax. In fact, yet another neighboring state might soon ditch its own inheritance tax. SSB 1026, which would repeal Iowa’s inheritance tax if approved, was advanced unanimously from an Iowa Senate subcommittee. It...