Nebraska Legislature Bill LB1059

Nebraska 2023-2024 Regular Session

• Introduced: 1/8/24
• Refer: 1/10/24
• Failed: 4/18/24

Caption

Change provisions relating to income taxes imposed on partnerships and small business corporations and notices of deficiency

Impact

The proposed changes in LB1059 could significantly influence state tax laws, particularly in how income taxes are applied to partnerships and small business corporations. This might lead to alterations in revenue for the state, depending on how these changes affect taxable income within these entities. Furthermore, by simplifying the taxation process, the bill may promote business growth and economic development by alleviating some of the complexities currently faced by these smaller entities.

Summary

LB1059 aims to amend the provisions related to income taxes imposed on partnerships and small business corporations, as well as the associated notices of deficiency. The bill seeks to provide a clearer framework for taxation of these entities, potentially impacting how small businesses compute their taxes and how they interact with state tax regulations. By updating the tax provisions, the bill intends to streamline the taxation process for partnerships and small business corporations, reducing administrative burdens and improving compliance rates.

Contention

While the bill aims to simplify taxation for partnerships and small business corporations, there could be points of contention regarding the implications of these changes. Critics may voice concerns about potential revenue loss for the state, especially if lower tax burdens are enacted. Additionally, there might be debates over the interpretations of what constitutes a small business or partnership, and how the modifications to the tax code might favor larger businesses at the expense of smaller entities. Hence, discussions surrounding LB1059 are likely to involve a balance between fostering economic growth and ensuring sufficient state revenue.