Over the last few months, Nebraska Governor Pete Ricketts has pushed a tax reform bill that he believes is the answer to taking the tax burden off all taxpayers in the state.
LB461, better known as the 2017 Nebraska Taxpayer Reform Act, is a multi-part package that Governor Ricketts says will provide tax relief for all Nebraskans. The bill caps Nebraska aggregate ag land valuation growth at 3.5 percent annually. It would also change the ag property value assessment methodology so that people would be taxed on income rather than how much their farms would sell for.
Governor Ricketts says it also supports working families. "Starting in 2019, we're going to collapse our tax bracket from four to three, making our tax system simpler," said Gov. Pete Ricketts, (R) Nebraska. "We're going to increase the earned income tax credit for low income Nebraska families. We're going to start taking our corporate cap tax rate down and our personal income tax rate down to help out job creators and Nebraska families."
But, not all people at the governor's press conference, Thursday, were in favor of the tax reform bill in its current state. "We're very concerned about the lack of property tax relief in this bill," said Ansley Mick, the director of state government relations for the Nebraska Farm Bureau. "And, especially as it relates to the amount of income tax relief. It's a ten to one income to property bill basically if you look at the numbers and what's projected to be savings in property taxes."
Ricketts said he is confident the bill will do well in the Unicameral because of the support seen at his conference. The bill will be debated on Friday.