Proposal to cut certain inheritance-tax rates advances to hearing amid pledge of state backup

A bill that would reduce certain inheritance‑tax rates and rely on specified replacement revenues was scheduled for a revenue committee hearing next week.

Sen. Rob Clements introduced LB 468 as a package of changes intended to find replacement funding sources ("pay‑fors") or other revenue that would prevent property‑tax increases, the presenter said. The Nebraska Association of County Officials (NACO) conditioned its support on assurances that the state would backstop any lost revenue.

The presenter said Governor Jim Pillen met with the NACO board by videoconference and "gave his assurance that revenues lost from inheritance taxes will be replaced by other funding or backstopped by the state," and that he was willing to testify in person or through staff at the hearing. NACO voted to conditionally support the bill contingent on replacement revenue.

Under the version described in the report, LB 468 would reduce inheritance‑tax rates for extended‑family and unrelated beneficiaries to 1% of the clear market value received by each beneficiary in excess of $100,000. "This is estimated to reduce inheritance tax collections by $33,000,000," the presenter said. The presenter listed several pay‑fors that the bill would include or consider: increasing the county share of documentary‑stamp taxes, raising administrative fees for motor‑vehicle tax collection, increasing marriage‑license and delinquent‑tax advertising fees, increasing nameplate‑capacity tax rates, and reallocating certain car‑line and insurance‑premium taxes.

The revenue committee scheduled the LB 468 hearing for Wednesday, Feb. 5, at 1:30 p.m. in Room 1524 of the State Capitol; it will be livestreamed on Nebraska Public Media.

The committee’s hearing will be the next formal step; no committee vote or floor action on LB 468 was reported in this session.