Nebraska Cattlemen Commend Governor Ricketts on Signing LB873
Nebraska Cattlemen Commend Governor Ricketts on Signing LB873
LINCOLN, NE (April 13, 2022) – Today, following the signing of LB873 by Governor Pete Ricketts, Brenda Masek, President of Nebraska Cattlemen released the following statements:
“Nebraska Cattlemen is proud to have played a key role in pushing the largest tax relief package ever in the history of our great state across the finish line. Specifically, the $205 million in property tax relief for Nebraskans who are upset with paying high taxes for community colleges, is a direct result of the work we completed last winter in the Nebraska Cattlemen Taxation working group. From the expansion of crucial property tax relief to lowering personal and corporate income taxes to make Nebraska more competitive with neighboring states and expediting the elimination of income taxes paid on social security, nearly all Nebraskans will undoubtedly benefit from this landmark legislative package.” She continued, “Nebraska Cattlemen is grateful for the thoughtful consideration and collaboration of Senators Linehan, Friesen, Briese, and Lindstrom to build a multifaceted tax proposal that touches nearly all Nebraskans. We also commend Governor Ricketts for his continued support of tax relief and reform by signing LB873.”
Background
The Nebraska Property Tax Incentive Act (LB1107) was passed by the One Hundred and Sixth Nebraska Legislature in 2020 to provide an additional funding mechanism for property tax relief.
During the One Hundred and Seventh legislative interim, Nebraska Cattlemen leaders worked with Senators to identify efforts to expand property tax relief – identifying property taxes paid to community college an area of focus.
LB873 was brought forth during the second half of the One Hundred and Seventh Legislature to adjust the work of LB1107 by total preserving income tax credits available for property taxes paid to local schools at $548 million and boosting the total to $561 million for 2023. Additionally, LB873 adjusts LB1107 by including an additional $201 million in relief for property taxes paid to community colleges. These adjustments equate to tax savings for property taxes paid to community colleges on top of the refundable income tax credits for property taxes paid to K-12 schools, approximately 25% of property taxes paid to K-12 schools in 2021.
In addition to property tax relief, the proposal also lowers income taxes over the next five years by lowering the individual income tax rate from 6.84% to 5.84% and lowers the corporate income tax rate from 7.1% to 5.84%. The measure also expedites the elimination of income taxes paid on social security income.
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The Nebraska Cattlemen association serves as the representative for the state’s beef cattle industry and represents professional cattle breeders, ranchers, and feeders, as well as county and local cattlemen’s associations. Its headquarters are in Lincoln with satellite offices around the state to best serve members.
