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One Hundred Ninth Legislature - First Session - 2025
Introducer€s Statement of Intent
LB468
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Chairperson: Senator R. Brad von Gillern
Committee: Revenue
Date of Hearing: February 05, 2025
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The following constitutes the reasons for this bill and the purposes which are sought to be accomplished
thereby:
LB468 aims to lower Nebraskas inheritance tax and make it fairer. €It will drop the Class 2 and Class 3
inheritance tax rates to 1% and increase exemptions to $100,000 making all classes identical.
Currently, beneficiaries pay one of three drastically different rates, depending upon their relation to the
deceased:
Class 1: Children, Parents, Siblings pay 1% after a $100,000 exemption.€
Class 2: Nieces/Nephews, Aunts/Uncles pay 11% after a $40,000 exemption.
Class 3: Non-relatives pay 15% after a $25,000 exemption.
Due to our double-digit Class 2 and 3 rates, 36% of inheritance tax is paid by 12% of beneficiaries.
Nebraska remains one of only five states that still collect inheritance tax, which include Kentucky, Pennsylvania,
New Jersey, and Maryland. Iowa ended its inheritance tax on Jan 1, 2025.€ Nebraska is the only state where
inheritance tax revenue goes exclusively to the counties. €
LB 468 replaces the inheritance tax revenue lost by counties due to the lower rates.€ The bill includes the
following 10 changes to county revenue sources:
1. County Motor Vehicle Tax Administration Fee increase from 1% to 2% to cover the costs of administering
collections.
2. Insurance Premium Tax: Counties will receive an additional 10%.
3. Securities Act Cash Fund- Counties will receive $5M/yr.
4. (Train) Car Line Tax allocated 100% to the county, aligning it with the Airline Distribution Method.
5. Nameplate Capacity Tax- an increase of rates from $3518/MW to $6560/MW, to reflect the 4.55% average
yearly property tax growth since 2011.
6. Doc Stamp tax: $.35 reallocation and $.50 increase.
7. to 10. NACO Recommended increases to cover the true cost of fees for: Marriage Licenses, Real Property
Advertising, Motor Vehicle Inspection, and Distressed Warrants.
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Principal Introducer:________________________________
Senator Robert Clements
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