A tax cut proposal backed by Gov. Pete Ricketts has undergone another revision in an effort to get it passed this legislative session.
It’s a richer mix of property and corporate income tax cuts that would total $650 million once fully implemented in 2030.
Despite the beefing up of agricultural property tax cuts, Revenue Committee chair, Senator Jim Smith of Papillion, sees difficulty gaining the 33 votes needed to overcome an expected filibuster.
“We still have a narrow path to 33,” Smith tells Nebraska Radio Network. “It’s going to be tough to arrive at 33 votes on this bill. But, can it be done? Yeah, I still believe there is a path.”
Legislative Bill 947 has undergone significant change. Scrapped is the proposal to convert the Property Tax Relief Fund into a refundable income tax credit. The relief fund would remain at $224 million. Refundable tax credits for property taxes paid would be added.
Agricultural producers would receive a 2% refundable income tax credit on property taxes paid, increasing by 2% a year until it reaches 20% once fully implemented by 2027. Residential property owners would also receive a 20% credit, eventually. It would grow a bit more slowly until being fully implemented by 2030.
LB 947 would phase in a cut in the corporate income tax to 6.84%, the same as the top individual income tax rate. Cuts to the individual income tax rate have been scrapped.
The bill also contains $5 million for workforce development.
Is Smith optimistic it can pass?
“Do I think there is a path? Yes,” Smith replies. “Do I think it’s going to be very, very difficult? Absolutely.”
AUDIO: Brent Martin reports [:45]