Editor's Pick Topical
Nebraska Legislature passes bill reducing inheritance taxes
- Martha Stoddard Omaha World-Herald
- Updated May 26, 2023
Prefer us on Google Learn More
The measure would increase the amount of property exempt from inheritance taxes and reduce some inheritance tax rates.
Nebraska lawmakers passed a bill Friday that would reduce inheritance taxes in the state.
LB310, introduced by Sen. Rob Clements of Elmwood, passed on a 37-1 vote. The measure would increase the amount of property exempt from inheritance taxes, reduce some inheritance tax rates and eliminate the tax for heirs 21 or younger.
Clements
Clements originally sought to cut the tax in half or phase it out entirely. But he agreed to a compromise after the measure met with strong opposition from county governments, which receive the proceeds from inheritance taxes.
Nebraska counties have collected about $70 million in inheritance taxes in each of the last six years, although the amount fluctuates from year to year for individual counties. As passed, LB310 would reduce collections to about $60 million.
People are also reading…
- How to watch Nebraska volleyball vs. Northwestern today
- Lincoln teen killed in crash at 84th and O streets
- What does it take to beat Nebraska volleyball? Wisconsin’s coach has an answer
- Sydney Loofe's family to share their story for the first time in new Hulu documentary
- Ricketts defends pardon of man convicted of sexually assaulting estranged wife
- Doane student killed in Texas in attempted murder-suicide
- Lincoln teen accused of threatening school resource officer arrested at gunpoint
- Just: We are all tired. And the whys keep coming in Nebraska's latest soul-crusher
- NBA's Dwyane Wade is weighing in on this Lancaster County race
- Why an NBA great is wading into the Lancaster County sheriff's race
- 'Much respect to him': Nebraska reunion with Dylan Raiola short-lived — and painful
- Banana Ball 2027 to bring dancing and trick-play baseball back to Nebraska
- Husker Report Card: Grading Nebraska's performance at Oregon
- Nebraska Athletics sets 2027 Husker football season ticket prices
- Nebraska's Elk Creek mine project moves closer to $840 million federal loan
Listen now and subscribe: Apple Podcasts | Spotify | RSS Feed | SoundStack | All Of Our Podcasts
Clements argued that the tax, which dates to 1901, is outdated and puts the state at a competitive disadvantage. Nebraska is one of only six states that levy inheritance taxes, and one of the six, Iowa, will phase out its tax by 2025.
Under current law, spouses are exempt from paying inheritance taxes. Immediate family, including children, parents, grandparents and siblings, pay a 1% rate on inherited property, with a $40,000 exemption. More distant relatives, such as nieces, nephews, aunts, uncles and their descendants, pay a 13% rate, with a $15,000 exemption. All others pay 18%, with a $10,000 exemption.
As passed, LB310 would raise the exemption for immediate family to $100,000 but leave the rate unchanged. The exemption for more distant relatives would increase to $40,000 and the rate would drop to 11%, while the exemption for unrelated heirs would increase to $25,000 and the rate would drop to 15%.
Effort to revamp Nebraska school aid, ease property taxes ends for now
Changes in state procurement sought after failed Omaha-area child welfare contract
Lincoln, Omaha water officials raise concerns about proposed new lake
Meet the Nebraska state senators
Nebraska has 49 state senators in the Legislature. Click through to find your state senator and others.
State Sen. Julie Slama
District: 1
From: Peru
Party: Republican
State Sen. Robert Clements
District: 2
From: Elmwood
Party: Republican
State Sen. Robert Hilkemann
District: 4
From: Omaha
Party: Republican
State Sen. Mike McDonnell
District: 5
From: Omaha
Party: Democratic
State Sen. Machaela Cavanaugh
District: 6
From: Omaha
Party: Democratic
State Sen. Megan Hunt.
State Sen. John Cavanaugh
District: 9
From: Omaha
Party: Democratic
State Sen. Wendy DeBoer
District: 10
From: Bennington
Party: Democratic
State Sen. Terrell McKinney
District: 11
From: Omaha
Party: Democratic
State Sen. Steve Lathrop
District: 12
From: Omaha
Party: Democratic
Handout
State Sen. Justin Wayne
District: 13
From: Omaha
Party: Democratic
State Sen. John Arch
District: 14
From: La Vista
Party: Republican
State Sen. Lynne Walz
District: 15
From: Fremont
Party: Democratic
State Sen. Ben Hansen
District: 16
From: Blair
Party: Republican
State Sen. Joni Albrecht
District: 17
From: Thurston
Party: Republican
Handout
State Sen. Brett Lindstrom
District: 18
From: Omaha
Party: Republican
State Sen. Mike Flood
District: 19
From: Norfolk
Party: Republican
State Sen. John McCollister
District: 20
From: Omaha
Party: Republican
State Sen. Mike Hilgers
District: 21
From: Lincoln
Party: Republican
State Sen. Mike Moser
District: 22
From: Columbus
Party: Republican
State Sen. Bruce Bostelman
District: 23
From: Brainard
Party: Republican
State Sen. Mark Kolterman
District: 24
From: Seward
Party: Republican
Handout
State Sen. Suzanne Geist
District: 25
From: Lincoln
Party: Republican
State Sen. Matt Hansen
District: 26
From: Lincoln
Party: Democratic
Anna Wishart
Courtesy photo
State Sen. Patty Pansing Brooks
District: 28
From: Lincoln
Party: Democratic
Handout
State Sen. Eliot Bostar
District: 29
From: Lincoln
Party: Democratic
State Sen. Myron Dorn
District: 30
From: Adams
Party: Republican
State Sen. Rich Pahls
District: 31
From: Omaha
Party: Republican
State Sen. Tom Brandt
District: 32
From: Plymouth
Party: Republican
State Sen. Steve Halloran
District: 33
From: Hastings
Party: Republican
Handout
State Sen. Curt Friesen
District: 34
From: Henderson
Party: Republican
State Sen. Raymond Aguilar
District: 35
From: Grand Island
Party: Republican
State Sen. Matt Williams
District: 36
From: Gothenburg
Party: Republican
John Lowe
State Sen. Dave Murman
District: 38
From: Glenvil
Party: Republican
State Sen. Tim Gragert
District: 40
From: Creighton
Party: Republican
Tom Briese
State Sen. Mike Groene
District: 42
From: North Platte
Party: Republican
State Sen. Tom Brewer
District: 43
From: Gordon
Party: Republican
State Sen. Dan Hughes
District: 44
From: Venango
Party: Republican
State Sen. Rita Sanders
District: 45
From: Bellevue
Party: Republican
State Sen. Adam Morfeld
District: 46
From: Lincoln
Party: Democratic
State Sen. Steve Erdman
District: 47
From: Bayard
Party: Republican
State Sen. John Stinner
District: 48
From: Gering
Party: Republican
State Sen. Jen Day
District: 49
From: Omaha
Party: Democratic
State Sen. Mike Jacobson
District: 42
From: North Platte
Party: Republican
PHOTO BY JUSTIN WAN, LINCOLN JOURNAL STAR
Close
Clements