Nebraska Unicameral looks at bill to phase out inheritance tax in Nebraska

LINCOLN, Neb. (KOLN) – The Unicameral started discussing inheritance tax and whether or not the tax on estates should be phased out on day 30 of the legislative session.

State Sen. Robert Clements introduced the bill. It would repeal the inheritance tax that takes between 1% to 15% of a person’s estate once its passed on. Clements said Nebraska is one of only five states in the U.S. to collect inheritance tax, and he said it’s not fair to those who inherit money. Particularly relatives who aren’t children or non-relatives who pay a higher tax.

“Nebraska is losing retirees to the 45 states who don’t take up to 15% from their estates when they die,” State. Sen. Clements said. “The saying is ‘don’t get caught dead in Nebraska.’”

State Sen. Jane Raybold warns that getting rid of the inheritance tax might increase property tax.

“Inheritance tax is a progress If tax that impacts those small number of Nebraskans and their estate,” State Sen. Raybould said. “Absent this source of revenue, the greater number of Nebraskans will share in the cost of any property tax increase.”

Clements said he does want to look and pass ways to offset the loss in revenue if the tax were to go away. The body didn’t vote on the issue on Tuesday, and it’s unclear when the debate will pick back up.

Click here to subscribe to our 10/11 NOW daily digest and breaking news alerts delivered straight to your email inbox.

Copyright 2024 KOLN. All rights reserved.