Closing in on Tax Relief – The Sequel
Same story. Different bill.
For tactical reasons, LB 939, the former tax relief bill we were working on, was killed on the floor this week. Now, the “Grand Tax Bargain” is LB 919. Suffice it to say, knowing how to use the legislature’s rules may mean the difference between success and failure.
The deal has been made about what’s in LB 919, but we still need your help to ensure more property tax relief becomes a reality.
Building upon the property tax reductions realized from the passage of LB 1107 in 2020, LB 919 ensures those refundable income tax credits continue to grow going forward and creates a similar tax credit for property taxes paid to community colleges.
If enacted, LB 919, coupled with the current LB 1107 tax credits will provide:
- An estimated $886 million for property tax relief.
- It puts a floor under the $681 million of refundable income tax credits for property taxes paid to K-12 schools, and
- Adds $205 million more in relief for property taxes paid to community colleges.
- When fully implemented, property tax savings in both areas will increase based on property valuation growth up to 5 percent to mirror average inflation.
- Tax savings for property taxes paid to community colleges will be phased in over five years and are estimated to grow from 20 percent to 60 percent of the property taxes paid.
- In addition to property tax relief, LB 919 also lowers income taxes over the next five years, by:
- Lowering the individual income tax rate from 6.84 percent to 5.84 percent, and
- Lowering the corporate income tax rate from 7.1 percent to 5.84 percent.
While there is still a long way to go to ensure that property, income, and sales taxes provide equal footing in funding our state’s priorities, enactment of LB 919 would be a significant step in the right direction.
We anticipate LB 919 will be on the agenda early next week. Stay tuned for updates.
US and Japan Strike Beef Trade Deal
This week, Nebraska Farm Bureau president Mark McHargue commented on the United States and Japan agreement to increase the beef safeguard trigger level under the U.S.-Japan Trade Agreement.
“The announced agreement between Japan and the United States, which will lessen the likelihood of triggering additional tariffs on U.S. beef exports to Japan, is a win for Nebraska’s beef producers and the state as a whole. Nebraska alone exported $457 million worth of high-quality Nebraska beef to Japan in 2021, a 44 percent increase compared to 2016 with additional growth expected in 2022,” NEFB President Mark McHargue said.
“These changes, which place the United States on par with those nations who are part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), will help ensure U.S. beef isn’t subject to higher tariffs simply due to export growth in this top market for Nebraska beef. Now is the time for the Biden administration to build upon this success and work to achieve additional wins for farmers and ranchers in the realm of agricultural trade,” McHargue said.