A legislative bill that is under consideration in the Unicameral has the support of the Nebraska Farm Bureau. President Steve Nelson says LB 947 has changed a lot since it was originally introduced so there may be some confusion. He says first it keeps important legislation in place by maintaining the current property tax credit fund that has been in place for many years. That will continue as it has in the past.
Nelson says, “Added to that is an additional two percentage points per year for the next ten years, so adding another 20-percentage points of reduction via an income tax rebate. That would begin retroactive to the beginning of 2018. It is phased in over a period of time but it becomes a significant number over that period of time.
Nelson says the bill also reduces the corporate income tax rate, maintains provisions related to personal property tax and provides additional money for workforce development.
Nelson says this relief comes at a time when the relief is needed in the agriculture community. He says, “There has been about a 50% price reduction in prices for most of the things we grow so there is a significant price squeeze going on. Margins are very small or nonexistent in some cases. At the same time we have seen increasing property taxes at some significant rates. This starts us down the path of reducing the amount of property tax being paid.”
Research shows while some agriculture related groups support the bill, others oppose it saying more relief is needed.