Summary and analysis of income tax reform in LB 754
Summary and analysis of income tax reform in LB 754
Nebraska’s Revenue Committee advanced an amendment to LB 754 out of committee on a 7-1 vote last week, bringing Gov. Pillen’s income tax reform plan to the full Unicameral for debate. The bill is a tour de force of income tax reforms. The individual and corporate income taxes are both overhauled by the bill, with...
By Michael Lucci
The state tax revolution sweeps across the Great Plains
The state tax revolution sweeps across the Great Plains
Nebraska lawmakers took a key step towards historic tax reform last week. Revenue Committee lawmakers voted to consolidate several tax reforms into LB 754 and to advance the tax package out of committee on Thursday, March 16. Nebraska’s legislative progress comes not a moment too soon, as major tax reform proposals are advancing across the...
By Michael Lucci
Nebraska’s tax code should encourage remote workers to move in
Nebraska’s tax code should encourage remote workers to move in
Nebraska has one of the most aggressive regimes for taxation of non-resident income in the country, according to new rankings from the National Taxpayers Union. While raising tax revenues from non-Nebraskans might seem like found money, it also ensures that many non-Nebraskans will never visit Nebraska for work purposes. Tax compliance is heavy for remote...
By Michael Lucci
Nebraska should join the responsible state budget revolution
Nebraska should join the responsible state budget revolution
Nebraska’s Revenue Committee is advancing a broad overhaul of the state’s tax code. These reforms, if enacted, would bring the Cornhusker State in line with the ongoing state tax revolution. During the post-pandemic era, states are turning away from progressive tax structures and creating lower, flatter income taxes. And mobile workers are moving towards states...
By Michael Lucci
Pole replacement and underground fund would empower broadband deployment in Nebraska
Pole replacement and underground fund would empower broadband deployment in Nebraska
Nebraskans are more reliant on broadband connectivity now than ever. Connectivity is important for people accessing government services, online banking, education, health care, and remote work. Connectivity is important to Nebraska’s largest industry – agriculture. Nebraska’s farmers and ranchers need access to agricultural technologies to increase yields and conserve resources. Small businesses are also very...
By Nicole Fox
Priorities for the 108th Nebraska legislature
Priorities for the 108th Nebraska legislature
At the writing of this blog, the 108th Nebraska Legislature is entering the 7th week of its 90-day session. A massive 812 bills were introduced in the first 10 days of the new session, each receiving a public committee hearing before full-day floor debates begin. Striking this year is the attention the Governor and legislative...
By Jim Smith
Nebraska’s Surging Tax Revenues Should Accelerate Reforms
Nebraska’s Surging Tax Revenues Should Accelerate Reforms
What to do with Nebraska’s surging tax revenues is a problem every policymaker would like to face. Nebraska legislative leaders have already pointed to the best solution. Senator Lou Ann Linehan, who chairs the Revenue Committee, argued that the surplus revenue “has to go back to the taxpayer.” The best way to do that, Sen....
By Michael Lucci
Nebraska Income Tax Modernization
Nebraska Income Tax Modernization
Nebraska’s income tax was created in the Nebraska Revenue Act of 1967 and has been applied to both individuals and corporations since its creation. The income tax was increased soon after it was created, and it evolved into a less competitive structure over its first few decades. Nebraska policymakers took steps to improve the competitiveness...
By Michael Lucci
Nebraska Sales Tax Modernization
Nebraska Sales Tax Modernization
Nebraska was one of the last states to adopt a sales tax, allowing the Cornhusker State to benefit from the decades of sales tax experience in other states. Nebraska policymakers can once again fuse their knowledge from decades of sales tax experience with the principles of sound taxation to update Nebraska’s sales tax for the...
By Michael Lucci
Nebraska property tax modernization
Nebraska property tax modernization
Nebraska’s property tax is older than the state itself, and old taxes benefit from being updated as the state economy evolves. Property taxation was first instituted in 1857, under a territorial legislature, and then became a statewide tax when Nebraska achieved statehood in 1867. Nebraska leaders have iteratively updated the property tax system throughout the...
By Michael Lucci
What you need to know about Truth in Taxation in Nebraska: Part 2
What you need to know about Truth in Taxation in Nebraska: Part 2
As a reminder, beginning this year, Nebraska’s counties, cities, school districts, and community colleges are required to directly notify taxpayers and hold joint public hearings if the budget they propose requires a more than 2% plus the real growth rate increase in property tax revenue compared to the previous year. This process is formally known...
By Elizabeth Hallgren
A Nebraska homeowner couldn’t pay $600 in property taxes, and lost $60,000 in home equity
A Nebraska homeowner couldn’t pay $600 in property taxes, and lost $60,000 in home equity
The Pacific Legal Foundation has asked the Supreme Court to hear a case questioning the constitutionality of a Nebraska law that allows counties to sell property tax liens to private entities, who can then take the property, and any equity that the owners have in excess of the tax obligation they owed. This process is known...
By Laura Ebke
What you need to know about Truth in Taxation in Nebraska: Part 1
What you need to know about Truth in Taxation in Nebraska: Part 1
Truth in Taxation was passed by the Nebraska Legislature in 2021 and will be implemented for the first time in September 2022. This is the first blog in a two-part series. In this post I will introduce you to why Nebraska needs Truth in Taxation and what you can expect from the process. In the...
By Elizabeth Hallgren