A revamped tax cut proposal has picked up a big endorsement.
Revenue Committee chair, Sen. Jim Smith of Papillion, sees a difficult road ahead to pass the mix of property tax and corporate income tax cuts.
“I continue to believe the path to success is narrow, but that our hard work and cooperation on LB 947 is critical to the image and to the future of our state,” Smith tells reporters when asked during a news conference hosted by Gov. Pete Ricketts.
But, Nebraska Farm Bureau President Steve Nelson says changes to the bill have won the Farm Bureau’s endorsement.
“My message today in support of LB 947 to the 49 members of the Nebraska Legislature is this: now is the time to act on property taxes,” Nelson says. “Nebraskans have asked for relief, they want it delivered.”
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.
It would total $650 million by 2030.
Nelson says the focus of the bureau would turn to the school funding formula if the legislature passes the governor’s proposal.
“Our efforts would be re-directed towards work on how we fund schools in the state of Nebraska,” Nelson says. “We don’t control the ballot initiative, that’s Reform for Nebraska. What we’re talking about is our support and not beyond that.”
Reform for Nebraska’s Future has been gathering signatures to place a $1 billion property tax cut proposal on the ballot in November.
AUDIO: Gov. Pete Ricketts hosts news conference on LB 947. [15:45]