Cornhusker State News

LINCOLN, NE – On May 31, Governor Jim Pillen signed LB243 and LB754 into law. Governor Pillen was joined at the event by state senators, business and ag groups. 

LB243 does the following: 

• Increases the amount of relief granted under the Property Tax Credit Act
• Establishes a 3 percent annual cap on how much school districts can increase property tax requests, with some exceptions
• Eliminates the 5 percent cap on the school district tax credit’s allowable growth percentage under the Nebraska Property Tax Incentive Act
• Curtails levying authority and provides state aid to community colleges

LB754 does the following: 

• Reduces the top individual and business income tax rates to 3.99% by tax year 2027
• Delivers full tax exemption for Social Security benefits a year early in 2024
• Provides tax credits related to child care, for families and providers

Both bills contain emergency clauses, and with the Governor’s signature, are effective immediately.

"These two bills, LB243 and LB754, bring transformational tax reform for Nebraskans and provide billions in property, business, and income tax relief for Nebraska businesses, farmers, ranchers, and taxpayers," said Governor Pillen. "For far too long, Nebraska has been a high tax state. From the river to Harrison, Nebraska taxpayers have had to deal with skyrocketing property taxes and unfair income and business taxes. Today's tax package puts Nebraska back on track to become competitive nationally." 

Sen. Tom Briese, who introduced LB243, and Sen. Lou Ann Linehan, who introduced LB754, spoke about how the whole tax package delivers real tax reform for Nebraska taxpayers. 

"This really is a historic day for Nebraska taxpayers," said Sen. Tom Briese. "Contained in these bills are some real gamechangers. The bottom line is they are going to put more dollars into everyday Nebraskans' pockets." 

"Every time we have a big tax cut package, everybody wins – whether you are paying income, business, or property taxes," said Sen. Lou Ann Linehan.  

Sen. Eliot Bostar spoke about the Child Tax Credit he helped introduce and its importance for Nebraska kids. 

"We are creating a comprehensive approach to ensure the opportunities are there for all of our children," said Sen. Eliot Bostar. "Our top priority is fighting for our kids and not giving up on a single kid." 

Video from the event can be found here.

Original source can be found here