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Counties urged to oppose measure to eliminate inheritance taxes as legislature weighs LB 468 alternative
Summary
A weekly NACo legislative report urged county officials to contact revenue committee members ahead of a March 12 hearing on LR 13 CA, a proposed constitutional amendment to ban inheritance taxes; the report framed LB 468, a legislative alternative that would reduce rates while reallocating and increasing certain fees, as the preferred option if replacement revenue is preserved.
The presenter said the revenue committee will hear LR 13 CA, a proposed constitutional amendment that would prohibit the state and any political subdivision from levying an inheritance tax, at a March 12 hearing and urged county officials to oppose the amendment unless sustainable replacement revenue is specified.
“LR 13 CA states that the state and any political subdivisions are prohibited from levying an inheritance tax,” the presenter said, and added that “if the legislature passes LR 13 CA, it will be placed before voters at the November 26 general election.”
The report presented LB 468 as a legislative alternative that would reduce inheritance tax rates for extended-family and unrelated beneficiaries while providing replacement revenue through a mix of reallocations and fee increases. Under LB 468, counties would receive a larger share of documentary stamp taxes and insurance premium taxes, nameplate capacity taxes on renewable energy would rise, and car line taxes would be reallocated to counties. The presenter also listed proposed fee increases for marriage licenses, advertising delinquent taxes, out-of-state motor vehicle inspections and other motor vehicle administrative duties.
The presenter named Senator Rob Clements as the introducer of LB 468 and said Clements agreed the proposed inheritance tax rate should be adjusted if the legislature reduces replacement revenue. The presenter also said Governor Pylin gave assurances that lost inheritance tax revenue should be replaced and that NACo testified in conditional support of LB 468 during its February hearing.
The report said the revenue committee has discussed LB 468 in executive sessions but has not yet voted to send the bill to the full legislature. County officials were urged to tell revenue committee members that “LB 468 with replacement revenue intact is preferable to LR 13 CA.”
The presenter provided participation instructions: notify the NACo office by Monday if planning to testify in person; attend and sign in to indicate opposition if not testifying; and submit written comments through the legislature's portal by 8 a.m. on the day of the hearing. The presenter also suggested contacting senators individually using information on the legislature's website or through the NACo office.
The revenue committee hearing is the next procedural step; no formal committee vote on LR 13 CA or LB 468 was reported in the legislative report.
